A) You are given a set of rules for this question: Should we buy a house or not? The following variables are used
A = Level of inflation
B = interest rate
C = housing prices
D = invest in housing (the potential goal)

The rules:
R1: IF inflation is low,
THEN interest rates are low,
ELSE interest rates are high

R2: IF interest rates are high,
THEN housing prices are high.

R3 IF housing prices are high,
THEN do not buy a house,
ELSE buy a house

i) Run backward chaining with a high inflation rate as given
Thus with the fact: Level of inflation as high
ii) Run forward chaining with a high inflation rate as given
Thus with the fact: Level of inflation as high

(13 marks)

b)
You are given an ES with the following rules:

R1: IF interest rates fall,
THEN bond prices will increase

R2: IF interest rates increase,
THEN bond prices will decline

Zachary company produces commercial gardening equipment. since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. the costs and cost drivers associated with the four overhead activity cost pools follow: activities unit level batch level product level facility level cost $ 64,800 $ 27,730 $ 15,000 $ 154,000 cost driver 2,400 labor hrs. 47 setups percentage of use 11,000 units production of 780 sets of cutting shears, one of the company’s 20 products, took 240 labor hours and 7 setups and consumed 15 percent of the product-sustaining activities. required: (a) had the company used labor hours as a company wide allocation base, how much overhead would it have allocated to the cutting shears? (b) how much overhead is allocated to the cutting shears using activity-based costing? (c) compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 780 units are produced. if direct product costs are $150 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system? (d) assuming that activity-based costing provides a more accurate estimate of cost, indicate whether the cutting shears would be over- or underpriced if direct labor hours are used as an allocation base. explain how over-or undercosting can affect vaulker's profitability. (e) comment on the validity of using the allocated facility-level cost in the pricing decision. should other costs be considered in a cost- plus pricing decision? if so, which ones? what costs would you include if you were trying to decide whether to accept a special order?

Taking commercial paper means the holder acts honestly

Lauer corporation uses the periodic inventory system and has provided the following information about one of its laptop computers: date transaction number of units cost per unit 1/1 beginning inventory 210 $ 910 5/5 purchase 310 $ 1,010 8/10 purchase 410 $ 1,110 10/15 purchase 255 $ 1,160 during the year, lauer sold 1,025 laptop computers. what was cost of goods sold using the lifo cost flow assumption?