A banker's acceptance is an order to pay a specified amount of money to the bearer on a given date. Banker's acceptances have been used since the twelfth century
Indicate whether the statement is true or false
TRUE
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PCAOB Auditing Standard 5 does not identify which of the following situations as one in which the auditor will modify the audit report on ICFR effectiveness?
a. When there is a restriction on the scope of the engagement. b. When there is other information contained in management's annual report on ICFR. c. When elements of management's annual report on internal control are incomplete or improperly presented. d. When the annual report includes a copy of the annual certification pursuant to Section 302 of the Sarbanes-Oxley Act.
We are more likely to purchase ________ under conditions of high involvement and ________ under conditions of low involvement
A) durable goods; nondurable goods B) nondurable goods; durable goods C) staples; impulse products D) impulse products; staples E) emergency products; unsought products
The organizational plan of most recommendation reports is
A) point by point. B) chronological. C) informal. D) retrospective.
Njombe Corporation manufactures a variety of products. In the past, Njombe has been using a traditional costing system in which the predetermined overhead rate was 150% of direct labor cost. Selling prices had been set by multiplying total product cost by 200%. Sensing that this system was distorting costs and selling prices, Njombe has decided to switch to an activity-based costing system for manufacturing overhead costs that uses the three activity cost pools listed below. Selling prices are still to be set at 200% of unit product cost under the new system. Information on these cost pools for next year are as follows: Activity Cost PoolActivity MeasureEstimated ActivityEstimated Overhead Cost?Machine SetupsNumber of setups400$150,000 ?Quality ControlNumber of
inspections1,500$180,000 ?Other OverheadMachine hours30,000$480,000 ?? Information (on a per unit basis) related to three popular products at Njombe are as follows: Model #19Model #36Model #58Direct material cost$400 $540 $310 Direct labor cost$810 $600 $220 Number of setups 2 3 1 Number of inspections 1 3 1 Number of machine hours 4 8 10 Under the traditional costing system, what would be the selling price of one unit of Model #36? A. $2,536 B. $4,080 C. $2,712 D. $5,506