Lorenzo and Neha are partners at a management consulting firm. They are trying to determine which of them has a comparative advantage in creating the 50 slides required for a sales pitch to a prospective client. Lorenzo can create 10 slides per hour. For other activities, he can bill clients $500 per hour. Lorenzo's opportunity cost of creating slides is per slide. Neha's opportunity cost of creating slides is 20% lower than Lorenzo's. However, as the senior partner, her billing rate is 15% higher. Based on all of these facts, has a comparative advantage in creating slides.

Need true or false 1 2 3 4 5 6 7 8

For each of the following users of financial accounting information and managerial accounting information, specify whether the user would primarily use financial accounting information or managerial accounting information or both: 1. sec examiner 2. bookkeeping department 3. division controller 4. external auditor (public accounting firm) 5. loan officer at the company's bank 6. state tax agency auditor 7. board of directors 8. manager of the service department 9. wall street analyst 10. internal auditor 11. potential investors 12, current stockholders 13. reporter from the wall street journal 14. regional division managers

Which of the following statements are false regarding activity-based costing? non-manufacturing costs are important to include when calculating the cost of each product. costs are allocated based on a pre-determined overhead rate. transitioning from traditional costing methods to activity-based costing can be complicated and costly. activity-based costing follows the same basic calculation methods as traditional costing approaches. none of the above