A plot of data that results in one extreme observation most likely indicates that ________
A) more than one cost pool should be used
B) an unusual event such as a plant shutdown occurred during that month
C) the cost-allocation base has been incorrectly identified
D) individual cost items do not have the same cost driver
Answer: B
Business
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The choice of a prospector strategy for a business would be most appropriate when a firm:
A) operates in an uncertain business environment. B) functions in a relatively stable business environment. C) sells products that are in the maturity stage of the life cycle. D) prefers a top-down decision making approach for management.
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Which of the following is not an approach to determine when to report an expense?
A) systematic allocation B) when incurred C) matching D) net realizable value
Business