Which of the following statements about ABC analysis is FALSE? A. ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings. B. ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings. C. In ABC analysis, "A" items should have tighter physical inventory control than "B" or "C" items have. D. In ABC analysis, forecasting methods for "C" items may be less sophisticated than for "A" items. E. Criteria other than annual dollar volume, such as high holding cost or delivery problems, can determine item classification in ABC analysis.

1. gar principles or "the principles"are intended to do what?

Laval produces lamps and home lighting fixtures. its most popular product is a brushed aluminum desk lamp. this lamp is made from components shaped in the fabricating department and assembled in the assembly department. information related to the 22,000 desk lamps produced annually follows.direct materials $280,000direct labor fabricating department (8,000 dlh × $24 per dlh) $192,000assembly department (16,600 dlh × $26 per dlh) $431,600machine hours fabricating department $15,200mhassembly department $20,850mhexpected overhead cost and related data for the two production departments follow.fabricating assemblydirect labor hours 150,000dlh 295,000dlhmachine hours 161,000mh 128,000mhoverhead cost $400,000 430,000required1. determine the plantwide overhead rate for laval using direct labor hours as a base.2. determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate.3. compute departmental overhead rates based on machine hours in the fabricating department and direct labor hours in the assembly department.4. use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps.

Which one of the following statements is correct? process costing systems use periodic inventory systems. process costing systems assign costs to departments or processes for a time period. companies that produce many different products or services are more likely to use process costing systems. production is continuous when a job-order costing is used to ensure that adequate quantities are on hand.