When must a company recognize an impairment loss?
A) If the fair value of the total discounted cash flows is less than the book value.
B) If the total discounted cash flows is less than the fair value.
C) If the total undiscounted cash flows is less than the book value.
D) If the total undiscounted cash flows is less than the fair value.
C
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Product mix length refers to the ________
A) number of versions offered for each product in the line B) ways in which the various product lines are related C) number of different product lines the company carries D) total number of items a company carries within its product lines E) total market share captured by the entire product line
Fort Smith Technologies incurred the following costs during the past year when planned production and actual production each totaled 20,000 units: Direct material used$280,000 Direct labor 120,000 Variable manufacturing overhead 160,000 Fixed manufacturing overhead 100,000 Variable selling and administrative cost 60,000 Fixed selling and administrative cost 90,000 If Fort Smith uses variable costing, the total inventoriable costs for the year would be:
A. $660,000. B. $460,000. C. $400,000. D. $560,000. E. $620,000.
Penetration pricing means charging a relatively low price for a product as a way to reach the mass market. The low price is designed to capture a large share of a substantial market. Thus, penetration pricing:
A. tends to be more effective in a less price-sensitive market B. tempts competitors to enter the market C. provides a large profit per unit sold D. recoups product development costs quickly E. tends to lower production costs
Which of the following statements is not correct with respect to Agency Funds?
A. Assets and liabilities are recognized at the time the government becomes responsible for the assets. B. Assets are offset by an equal amount of liabilities. C. Agency funds use modified accrual accounting. D. Assets accounted for in an agency fund belong to the party or parties for which the government acts as agent.