Both direct and indirect costs can be relevant to a particular decision.
Answer the following statement true (T) or false (F)
True
Direct costs can be traced to cost objects in a cost-effective manner. Indirect costs cannot be traced to objects in a cost-effective manner. Accountants use cost accumulation to determine the cost of a particular object. As a result, relevant costs can include direct and indirect costs.
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Shutters Company adopted a defined benefit pension plan on January 1 . 2014 . Shutters amortizes the prior service cost over 1 . years and funds prior service cost by making equal payments to the fund trustee at the end of each of the first ten years. The service cost is fully funded at the end of each year. The following data are available for 2014: Service cost
.......................................... $440,000 Prior service cost: Amortized ........................................... 166,800 Funded .............................................. 228,800 If interest cost for 2014 is equal to the return on plan assets, then Shutters's prepaid pension cost at December 31 . 2014, is a. $228,800. b. $166,800. c. $62,000. d. $0
Blanton Corporation purchased 17% of the outstanding shares of common stock of Worton Corporation as a long-term investment. Subsequently, Worton Corporation reported net income and declared and paid cash dividends. What journal entry would Blanton Corporation use to record the purchase of Worton Corporation common stock?
A) debit Investment in Worton Corporation; credit Cash B) debit Cash; credit Dividend Revenue C) debit Investment in Worton Corporation; credit Income of Worton Corporation D) debit Cash; credit Investment in Worton Corporation
The approach to conflict resolution that emphasizes both assertiveness (advocating one’s position) and cooperativeness (concern for the other side’s position) is called:
a. Collaboration b. Confrontation c. Avoidance d. Accommodation
Items that are purchased or manufactured in quantities greater than needed immediately create
________ inventories. A) hedge B) lot size C) anticipation D) any of the above E) none of the above