1. Pruitt Company has developed an integrated system that coordinates the flow of all goods, services, and information into and out of the organization, working with raw material vendors as well as customers to improve service and reduce costs. The firm is said to be using:
participative management.
top-down management.
strategic cost management.
supply chain management.
management by objectives (MBO).
2. Manufacturing overhead:
includes direct materials, indirect materials, indirect labor, and factory depreciation.
is easily traced to jobs.
includes all selling costs.
should not be assigned to individual jobs because it bears no obvious relationship to them.
is a pool of indirect production costs that must somehow be attached to each unit manufactured.
3. Metro Corporation uses a predetermined overhead rate of $20 per machine hour. In deriving this figure, the company's accountant used:
a denominator of budgeted machine hours for the current accounting period.
a denominator of actual machine hours for the current accounting period.
a denominator of actual machine hours for the previous accounting period.
a numerator of budgeted machine hours for the current accounting period.
a numerator of actual machine hours for the current accounting period.