When a company uses a
allocation rate there is only one base for allocating all overhead costs to products or other cost objects.

Answers

Answer 1

Answer:

company-wide

Explanation:

Using a single company-wide allocation rate implies that only one cost driver (or cost base) is used to allocate all the overhead costs to the product units, batches, departments, or divisions, and other cost objects.  This single rate is the plant-wide or company-wide allocation rate.  It is opposed to the use of multiple allocation rates, where different rates are calculated and used to allocate overhead costs from different cool pools to the units or activities consuming the services.  The company-wide allocation rate is typical with traditional costing method, while the multiple allocation rates are used with ABC costing method.


Related Questions

Saul is a manager at Holden Apparels Inc. and is friends with the company's CEO. This privilege gives Saul the information that Holden Apparels is in the midst of talks to take over a leading rival. Saul buys stocks of Holden with the expectation that its stocks will appreciate. But the deal falls through and the stocks of Holden depreciate in the following months. Are Saul's actions unethical

Answers

Answer:

D) Yes, because it is unethical to trade stocks based on insider information

irrespective of the final outcome.

Explanation:

THIS ARE THE OPTIONS FOR THE QUESTION;

A) Yes, because it is illegal and unethical for Saul to possess any kind of insider

information.

B) No, because Saul did not make any profits from trading stocks using this

information.

C) No, because Saul did not ask the CEO to disclose such information to him.

D) Yes, because it is unethical to trade stocks based on insider information

irrespective of the final outcome.

From the question,we are told about Saul who is a manager at Holden Apparels Inc. and is friends with the company's CEO. This privilege gives Saul the information that Holden Apparels is in the midst of talks to take over a leading rival. Saul buys stocks of Holden with the expectation that its stocks will appreciate. But the deal falls through and the stocks of Holden depreciate in the following months. In this case, Saul's actions are unethical

because it is unethical to trade stocks based on insider information irrespective of the final outcome. Stock trading can be regarded as buying as well as selling of shares in a specific company. Unethical behavior in stock market are actions that falls outside morally right practice/trading in stock market. Unethical trading of stock could be a process of purchasing shares in particular firm that engages herself in some questionable operational as well as recruitment activities. In some cases it should be noted that stocks trading could be unethical as a result of trader engaging in trading because they are getting information from insider in order to influence their trading.

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