The main difference between activity-based costing and traditional costing systems is that activity-based costing uses a separate allocation base for each activity

Martin Production Co is considering investing in specialized equipment costing $975,000

The equipment has a useful life of five years and a residual value of $75,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are given below: Year 1 $275,000 Year 2 220,000 Year 3 200,000 Year 4 200,000 Year 5 180,000 $1,075,000 Compute the accounting rate of return on the investment, Show your calculations and round to two decimal places. What will be an ideal response

At settlement (closing), property taxes are prorated between buyer and seller.

a. true b. false