Activity Based Costing (ABC) allocates costs to activities based on a fixed predetermined measure (e.g., cases)
Indicate whether the statement is true or false
False
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Assume an organization has total current assets of $200,000; total current liabilities of $75,000; inventories of $50,000; prepaid expenses of $25,000; net sales of $770,000; and beginning accounts receivable of $42,000 and ending accounts receivable of $44,000 . What is the quick ratio for this organization?
a. $125,000 b. 1.7 c. 17.9 d. 19.9
When appraising an automobile mechanic, Mac based his appraisal on the individual’s performance doing routine maintenance and repairs on cars. It appears that Mac is basing his appraisal on ________.
A. traits B. behaviors C. results D. incidents E. None of the above
Which of the following is true of maritime liens?
A. They attach to the res and travel with it. B. They require possession in both common law and civil law countries. C. In civil law countries, the owner is not essential to the existence of a lien against a ship. D. If a vessel is sold, the lien does not go with the ship, if the new owner is unaware of its existence.
Use the following information to prepare a budgeted income statement for Stellar Company for the month of June.a. Beginning cash balance on June 1 is $52,000.b. Sales amounts are: April (actual), $1,450,000, May (actual), $1,600,000, and June (budgeted), $1,700,000.c. Cost of goods sold is 53% of sales.d. Budgeted cash payments for salaries in June: $260,000. Salaries payable on May 31 are $60,000 and are expected to be $50,000 on June 30.e. Budgeted depreciation expense for June: $24,000.f. Other cash expenses budgeted for June: $282,000.g. Accrued income taxes due in June: $48,000.h. Bank loan interest due in June: $8,000 which represents the 1% monthly expense on a bank loan of $800,000.i. The income tax rate applicable to the company is 30%.
What will be an ideal response?