A machine distributor sells two models, basic and deluxe. The following information relates to its master budget. Basic Deluxe Sales (units) 8,000 2,000 Sales price per unit$8,000 $12,000 Variable costs per unit$6,400 $9,000 Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models.What is the sales quantity variance for the deluxe model?
A. $1,344,000.
B. $1,600,000.
C. $256,000.
D. $120,000.
Answer: D
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Allenby Spares, Inc. is a shop that sells spare automotive parts from various manufacturers. A customer buys a faulty brake manufactured by TurboDiezel, Inc. from Allenby Spares and is involved in an accident due to the use of the faulty brake in his vehicle. Which of the following is true in this situation?
A. Allenby Spares cannot be held strictly liable since the brake was manufactured by TurboDiezel. B. TurboDiezel cannot be held strictly liable as the company is not the seller in this case. C. Neither Allenby nor TurboDiezel can be held strictly liable for the faulty brake. D. Allenby Spares can be held strictly liable for the faulty brake as it is part of the distribution chain.
A majority of the states have passed legislation establishing a cooling-off period during which the consumer may void a contract to purchase goods and services
Indicate whether the statement is true or false
In process costing, direct labor includes only the labor that is applied directly to individual units of product.
Answer the following statement true (T) or false (F)
Which of the following is an example of ethical behavior of the management of a corporation??
A. ?Executives of the corporation are pursuing their personal interest. B. ?Payment of bribe by the management of the corporation to foreign governments to obtain business. C. ?The management of the corporation uses confidential information for personal gain. D. ?The management actions are often resulting in large gains for themselves and large losses for stockholders. E. ?The management takes steps to adhere to laws and regulations relating to product safety.