The primary difference between normalized and actual costing methods lies in the determination of a job's:
A. direct labor costs.
B. selling costs.
C. direct material costs.
D. administrative costs.
E. manufacturing overhead costs.
Answer: E
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The company's annual required rate of return is 8%. Using the factors in the table, calculate the present value of the cash inflows. (Round all calculations to the nearest whole dollar.)
Door to Door Moving Company is considering purchasing new equipment that costs $720,000. Its management estimates that the equipment will generate cash inflows as follows:
A) $38,804
B) $774,000
C) $884,000
D) $885,326
A disadvantage of centralized purchasing to a chain retailer is _____
a. overdependence on the boss b. lack of quantity discounts c. absence of bargaining power d. the difficulty in adapting to local needs
Which of the following statements is CORRECT?
A. If a project has "normal" cash flows, then its MIRR must be positive. B. If a project has "normal" cash flows, then it will have exactly two real IRRs. C. The definition of "normal" cash flows is that the cash flow stream has one or more negative cash flows followed by a stream of positive cash flows and then one negative cash flow at the end of the project's life. D. If a project has "normal" cash flows, then it can have only one real IRR, whereas a project with "nonnormal" cash flows might have more than one real IRR. E. If a project has "normal" cash flows, then its IRR must be positive.
Full-scale market tests
A. may provide competitors advance information about products. B. are not expensive, even when a full market picture is sought. C. should always be skipped when consumer preferences are clear. D. are unrealistic because they do not test the whole marketing mix. E. are used mostly for products having long lead times.