A policy is a decree issued by an agency to implement a law passed by Congress.

Which of the following statement is true regarding choice of the denominator volume level in conjunction with the process of allocating fixed manufacturing costs to production?

a. This choice has no effect on the standard overhead cost-allocation rate. b. The choice affects the standard overhead cost-allocation rate but not product cost. c. Under absorption (full) costing, this choice can affect reported profits for the period. d. The choice typically will affect end-of-period asset values, but not the production-volume variance for the period. e. The choice is important only if the company in question uses variable costing.

Which types of companies are most likely to utilize two-tier wage systems?

A) unionized firms B) sales firms C) public sector companies D) private sector companies