Answer the following statements true (T) or false (F)
1. When more units are sold than produced, operating income is higher under absorption costing than
variable costing.
2. For every unit that is produced but not sold, absorption costing "hides" some of the fixed
manufacturing overhead in ending Finished Goods Inventory.
3. The use of variable costing to determine managers' bonuses does not give the incentive to produce
more products than needed.
4. Under absorption costing, the more units added to ending Finished Goods Inventory, the less fixed
manufacturing overhead is "hidden" in ending Finished Goods Inventory at the end of the accounting
period.
5. Under absorption costing, the more fixed manufacturing overhead in ending Finished Goods
Inventory, the larger the Cost of Goods Sold.
1. FALSE
2. TRUE
3. TRUE
4. FALSE
5. FALSE
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Effective influence occurs when a person
A. comprehends and retains the content of a message. B. acts in accordance with the content of a message. C. is exposed to, and pays attention to, the content of a message. D. All of these choices are correct.
A company that uses the percent of sales to account for its bad debts had credit sales of $740,000 in Year 1, including a $720 sale to Marshall Fresh. On December 31, Year 1, the company estimated its bad debts at 1.5% of its credit sales. On June 1, Year 2, the company wrote off, as uncollectible, the $720 account of Marshall Fresh. On December 21, Year 2, Marshall Fresh unexpectedly paid his account in full. Prepare the necessary journal entries: (a) On December 31, Year 1, to reflect the estimate of bad debts expense. (b) On June 1, Year 2, to write off the bad debt. (c) On December 21, Year 2, to record the unexpected collection.
What will be an ideal response?
The document that results from the budgeting process is referred to as the ______________________________
Fill in the blank(s) with correct word
The project management pearl of wisdom that declares, "If they know nothing of what you are doing, they assume you are doing nothing," means that:
A) Stakeholders must be communicated with on a continual basis throughout the project's development. B) The duration of most projects is sufficiently long as to contain many days when no actual progress is being made. C) The more complex a project is, the more likely that the client who will ultimately receive the project has no idea how it is being executed. D) A project manager that holds lengthy progress meetings with his team will generally complete projects more successfully.