The ________ method of budgeting is being employed when expenditures are allocated by assigning a fixed amount of the unit product cost to promotion and multiplying this amount by the number of units sold.
A. arbitrary allocation
B. competitive parity
C. percentage-of-sales
D. objective and task
E. return on investment
Answer: C
You might also like to view...
If a business had a margin of safety ratio of 20%, variable costs of 75% of sales, fixed costs of $240,000, a break-even point of $960,000, and operating income of $60,000 for the current year, what are the current year's sales?
A) $1,200,000 B) $1,040,000 C) $1,260,000 D) $1,020,000
The Heinrich v. Titus-Will Sales, Inc case stands for the principle that:
a. the UCC requires proper state licensing for a company claiming to be a merchant to actually have merchant status. b. a buyer in the ordinary course of business acquires good title when buying from a merchant seller who was entrusted with possession of the goods. c. risk of loss depends on who has title to the goods at the time the goods are damaged or destroyed. d. a void title is no title.
Division A makes a part with the following characteristics: Production capacity in units 15,000unitsSelling price to outside customers$25 Variable cost per unit$18 Total fixed costs$60,000 ?Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A. Division B is now purchasing these parts from an outside supplier at a price of $24 each.?Suppose that Division A has ample idle capacity to handle all of Division B's needs without any increase in fixed costs and without cutting into sales to outside customers. If Division A refuses to accept the $24 price internally and Division B continues to buy from the outside supplier, the company as a whole will be:
A. worse off by $10,000 each period. B. worse off by $35,000 each period. C. worse off by $30,000 each period. D. better off by $15,000 each period.
Tim wrote a negotiable note. Subsequently, Tim's debts were discharged in bankruptcy. If a holder in due course presents the note for payment, Tim does not have to pay.
Answer the following statement true (T) or false (F)