Johnson Technology specializes in graphic design and video production. In October 2014, the company incurred the following costs for providing services to one of its clients. Supplies $ 200 Labor 1,500 Overhead 1,800 Johnson Technology's contract with the client discloses 20% profit margin on the cost incurred. Determine the total amount to be received by the company from its client
A) $3,500
B) $3,860
C) $4,200
D) $2,800
C
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In the ATM model, the demand for money depends on
A. the nominal interest rate and the money supply. B. the nominal interest rate and the ongoing rate of inflation. C. the nominal interest rate, the cost of obtaining cash, the probability of loss or theft, and the money supply. D. the nominal interest rate, the cost of obtaining cash, the probability of loss or theft, and the amount of spending.
On the reporting of liabilities where a range of values exists as a possible outcome, IFRS requires which of the following points to be recorded as a provision, if the outcome is probable?
a. Low end of the range. b. High end of the range. c. Midpoint of the range. d. IFRS presents no specific guidance as to this point.
Under the periodic inventory system, which of the following statements is correct?
A) During the period, the business records the cost of all inventory bought in the Merchandise Inventory account. B) Purchase Returns and Allowances and Purchase Discounts are contra expense accounts. C) Freight in is debited to the Purchases account. D) Purchase discounts are recorded as credits to the Purchases account.
The following are characteristics of a contemporary control system, except:
A. It is a key catalyst for an ongoing debate about underlying data, assumptions, and action plans. B. It generates information that is important enough to demand regular and frequent attention. C. It must focus on constantly changing information that is strategically important. D. It circumvents the need for face-to-face meetings among superiors, subordinates, and peers.