A cost that would be included in product costs under both absorption costing and variable costing is:
A. variable selling expenses.
B. factory rent.
C. supervisory salaries.
D. variable manufacturing costs.
Answer: D
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The first step in testing for impairment of goodwill is to
A) ?measure the fair value of the reporting unit and the fair value of the identifiable assets of the reporting unit. B) ?compare the fair value of the reporting unit with its book value, including goodwill. C) ?compare the fair value of the reporting unit with its book value, excluding goodwill. D) ?assess qualitative factors that indicate whether the fair value of the reporting unit is greater or less than its carrying value.
Answer the following statements true (T) or false (F)
Victor Corporation has provided you with the following budgeted income statement for one of its products:
Victor Corporation believes that 65% of the fixed costs would be avoidable if the product line was dropped. Based on the impact on the company's operating income or loss, Victor should keep the product line.
The E shop Africa fair trade market offers all the following products except:
a. Musical instruments b. Carvings c. Religious artifacts d. Jewelry
A company that repairs and maintains HVAC systems for businesses wants to assign three service teams to three geographical zones, one team to each zone
Because of the familiarity with each team to the companies located in a zone, there are differences in the efficiencies of each team, reflected in the service costs. The matrix below shows the service costs (in thousands of dollars) for each team in each zone. Assign each team to a zone that minimizes cost. A) Assign T1 to zone A, T2 to zone B, and T3 to zone C. B) Assign T1 to zone A, T2 to zone C, and T3 to zone B. C) Assign T1 to zone B, T2 to zone A, and T3 to zone C. D) Assign T1 to zone B, T2 to zone C, and T3 to zone A. E) Assign T1 to zone C, T2 to zone A, and T3 to zone B.