Indicate whether each of the following statements about product costing systems is true or false.The type of product made by a manufacturer affects the type of accounting system that it should use to calculate the costs of its products. ______Hybrid costing systems are used by service businesses, but not manufacturing companies. ______A company that manufactures high-volume industrial chemicals such as sulfuric acid would use a job-order costing system. ______An automobile repair shop would use a job-order costing system to assign costs to individual jobs. ______Only process costing systems require averaging in assigning costs to products. ______
What will be an ideal response?
The type of product made by a manufacturer affects the type of accounting system that it should use to calculate the costs of its products. T
Hybrid costing systems are used by service businesses, but not manufacturing companies. F
A company that manufactures high-volume industrial chemicals such as sulfuric acid would use a job-order costing system. F
An automobile repair shop would use a job-order costing system to assign costs to individual jobs. T
Only process costing systems require averaging in assigning costs to products. F
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Businesses record goodwill ________
A) when they enjoy an outstanding reputation and loyalty with customers B) if they acquire another company at an amount higher than the market value of its net assets C) when they continue the business of an acquired corporation D) if their market value has increased significantly in the recent years
In Matrixx Initiatives v. Siracusano case referenced in the text, the U.S. Supreme Court analyzed the question of whether an issuer must disclose known information about possible side effects of a drug that could affect the drug's stock price even though no proven statistical link exists between use of the drug and the adverse effect. The Court held:
a. that a bright-line test would be applied requiring at least one civil judgment in favor of a plaintiff before a defendant would be required to disclose allegations of a link between a drug and an adverse effect and that the defendants were entitled to dismissal of the case because no showing of a civil judgment had been introduced. b. that no statistical link between the use of the drug and adverse effects was required but that the defendants were entitled to dismissal of the case because the plaintiffs did not personally suffer adverse health effects from the drug. c. that the defendants were entitled to dismissal of the case because the plaintiffs could not prove a statistical link between use of the drug and adverse effects. d. that the "total mix of information" test applied in regard to the issue of materiality, that statistical proof was unnecessary, and that sufficient evidence existed for the plaintiffs to proceed to trial.
Suzu, an employee of Ridgeline Credit Union, deposits into her account checks entrusted to the credit union through its ATM system by customers to deposit into their accounts. This is A) burglary B) embezzlement
C) larceny. D) mail and wire fraud.
For Proposal 3, the cash flow pattern for the replacement project is ________. (See Table 11.2)
A) a mixed stream and conventional B) a mixed stream and nonconventional C) a perpetuity and conventional D) an annuity and nonconventional