When current information falls short of desired information there is an information gap
Indicate whether the statement is true or false
TRUE
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The calculation of Rate of Return on Common Shareholders' Equity (ROCE) is as follows: Rate of Return on Common = Shareholders' Equity
a. Net Income - Dividends on Preferred Stock --------------------------------------------------- Ending Common Shareholders' Equity b. Net Income --------------------------------------------------- Average Common Shareholders' Equity c. Net Income + Dividends on Preferred Stock --------------------------------------------------- Average Common Shareholders' Equity d. Net Income - Dividends on Preferred Stock --------------------------------------------------- Average Common Shareholders' Equity e. Net Income + Dividends on Preferred Stock --------------------------------------------------- Ending Common Shareholders' Equity
In activity-based costing (ABC), wages paid to an assembly-line worker would most likely be classified as:
A) overhead. B) a product-level cost. C) direct labor. D) a facility-level cost.
The word "parol" literally means release
a. True b. False Indicate whether the statement is true or false
The Truck Toys Company manufactures traditional wooden toy trucks. It has determined its variable cost/unit to be $1.50/truck
Fixed costs, however, are quite high because old equipment is used in the manufacturing process and costly packaging is needed to market the toy trucks. The fixed costs are estimated at $11,000/month. The company sells their toy trucks at a price of $7.75/each. How many toy trucks must be sold annually to break even? A) 1,760 toy trucks B) 5500 toy trucks C) 20,000 toy trucks D) 1,879 toy trucks E) None of the above