KAB Inc., a small retail store, had the following results for May. The budgets for June and July are also given. May(actual) June(budget) July(budget)Sales$42,000 $40,000 $45,000Less cost of goods sold 21,000 20,000 22,500Gross margin 21,000 20,000 22,500Less selling and administrative expenses 20,000 20,000 20,000Net operating income$1,000 $0 $2,500?Sales are collected 80% in the month of the sale and the balance in the month following the sale. (There are no bad debts.) The goods that are sold are purchased in the month prior to sale. Suppliers of the goods are paid in the month following the sale. The "selling and administrative expenses" are paid in the month of the sale.?The cash disbursements during June for goods purchased for sale and for selling
and administrative expenses should be:
A. $40,000
B. $41,000
C. $43,500
D. $42,500
Answer: B
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Which of the following is a NYSE mandated guideline for corporate governance?
a. Boards need to consist entirely of independent directors. b. Boards must have an audit committee with a minimum of three independent directors. c. Boards must have a compensation committee with a minimum of three independent directors. d. CFOs must provide an annual certification of compliance with corporate governance standards.
If the target audience is to undertake the action desired by the marketer, the offer must
a. eliminate all the negative consequences b. provide a desired combination of positive and negative consequences in the form of a value proposition c. maintain the status quo d. provide products with the right attributes e. provide a mix of products and services
Does a firm in SR Corp’s position need to focus its marketing activities? What criteria might be used to prioritize these three market niches?
What will be an ideal response?
Barbeau Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: MillingCustomizingMachine-hours 17,000 13,000Direct labor-hours 2,000 5,000Total fixed manufacturing overhead cost$119,000$42,000Variable manufacturing overhead per machine-hour$1.60 Variable manufacturing overhead per direct labor-hour $4.30 During the current month the company started and finished Job A492. The following data were
recorded for this job: Job A492:MillingCustomizingMachine-hours 90 20Direct labor-hours 20 50The amount of overhead applied in the Milling Department to Job A492 is closest to: A. $756.00 B. $144.00 C. $774.00 D. $146,200.00