An example of a committed fixed cost is:
A. advertising.
B. a long-term equipment lease.
C. management training seminars.
D. research and development.
Answer: B
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Assume that a company records purchases net of discount. If the company bought merchandise valued at $15,000 on credit terms 3/15, net 30, the entry to record a payment for half of the purchase within the discount period would include a debit to
a. Accounts Payable for $7,275 and a credit to Cash for $7,275 b. Accounts Payable for $7,500 and a credit to Cash for $7,500 c. Accounts Payable for $7,275 and to Interest Expense for $250, and a credit to Cash for $7,500 d. Accounts Payable for $7,275 and to Interest Revenue for $250 and a credit to Cash for $7,500.
The United States and Cuba are using economic sanctions when Cuban cigars are sold in the United States
Indicate whether the statement is true or false
Wintergreen Products allocates overhead based on direct labor hours. During 2011 overhead was overapplied by $4,000. Assuming that the year-end adjustment to clear out the overapplied overhead has not yet been done, which of the following statements is most likely true if there are no ending inventories?
A) Direct material costs are understated B) Direct labor costs are understated C) Cost of goods sold is overstated D) Net income is overstated
Phil invents "PhutureNow," new Web site design software, and applies for a patent. If Phil is granted a patent, his invention will be protected
A. for ten years. B. for twenty years. C. for the life of the inventor plus seventy years. D. forever.