Highjinks, Inc., has provided the following budgeted data: Sales 20,000unitsSelling price$100per unitVariable expense$70per unitFixed expense$450,000 What is the company's margin of safety as a percentage of sales?
A. 100%
B. 50%
C. 25%
D. 75%
Answer: C
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Flake Company accepted a check from Ramos Company as payment for services rendered by Flake Company. Later Flake's bank statement revealed that Ramos' check was an NSF check. Recognizing the NSF check on Flake's books would act to:
a. Decrease total assets b. Decrease total owners' equity c. Both a. and b. d. Have no effect on Total Assets
When determining the operational feasibility of a new system, the expected ease of transition from the old system to the new system should be considered
Indicate whether the statement is true or false
For many managerial decisions (such as outsourcing and special order decisions), unit-level costs are avoidable costs.
Answer the following statement true (T) or false (F)
What lesson is the text trying to impart when relating the 2015 experience of the company British Petroleum?
a. The up-front investments in sustainability can be costly. b. Long-term investment in sustainability brings higher profits. c. Shareholders tend to abandon companies that aren’t sustainable. d. Failure to invest in environmental responsibility can be very damaging to a company.