The types of product defects that have traditionally been recognized in product liability law include manufacturing defects
Indicate whether the statement is true or false
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Following are several statements regarding accounting records or audit documentation. Which of the statements is correct?
A. Documentation of an auditor's understanding of the entity's internal control system is not necessary. B. Audit documents may be regarded as a substitute for the company's accounting records. C. Accounting records belong to the auditee. D. The independent auditor may discard audit documents after two years.
To save the audience time when reading and responding to a communication, the communication should be what?
A) Timely B) Electronic C) Efficient D) Detailed E) Written
Underfoot Products uses standard costing. The following information about overhead was generated during May: Standard variable overhead rate $2 per machine hour Standard fixed overhead rate $1 per machine hour Actual variable overhead costs $390,000 Actual fixed overhead costs $175,000 Budgeted fixed overhead costs $190,000 Standard machine hours per unit produced 10 Good units produced 18,000
Actual machine hours 200,000 Using the above information provided for Underfoot Products, compute the fixed overhead volume variance. A) $5,000 (U) B) $10,000 (U) C) $10,000 (F) D) $15,000 (F)
Collins GroupThe Collins Group, a leading producer of custom automobile accessories, has hired you to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below.
Assets Current assets$ 38,000,000 Net plant, property, and equipment 101,000,000 Total assets$139,000,000 Liabilities and Equity Accounts payable$ 10,000,000 Accruals 9,000,000 Current liabilities$ 19,000,000 Long-term debt (40,000 bonds, $1,000 par value) 40,000,000 Total liabilities$ 59,000,000 Common stock (10,000,000 shares)30,000,000 Retained earnings 50,000,000 Total shareholders' equity 80,000,000 Total liabilities and shareholders' equity$139,000,000 The stock is currently selling for $15.25 per share, and its noncallable $1,000 par value, 20-year, 7.25% bonds with semiannual payments are selling for $875.00. The beta is 1.25, the yield on a 6-month Treasury bill is 3.50%, and the yield on a 20-year Treasury bond is 5.50%. The required return on the stock market is 11.50%, but the market has had an average annual return of 14.50% during the past 5 years. The firm's tax rate is 25%. Refer to the data for the Collins Group. Which of the following is the best estimate for the weight of debt for use in calculating the firm's WACC? A. 18.67% B. 19.60% C. 20.58% D. 21.61% E. 22.69%