Indicate whether each of the following statements is true or false._____ a) Sales taxes paid on the purchase of equipment would be expensed in the year of the purchase._____ b) Real estate fees and attorney's fees related to the purchase of a building would be added to the cost of the building._____ c) Payment of a fine for improper burning of a demolished building would be added to the land account._____ d) Delivery charges on equipment would be expensed in the year of the purchase._____ e) The matching concept requires that plant assets be recorded at the amount paid for the assets.
What will be an ideal response?
a) This is false. Sales tax is included in the cost of the asset purchased.
b) This is true. The cost of a building includes any one-time fee related to the purchase.
c) This is false. The fine would be expensed because it was not necessary to use the land. It was because of the company's own negligence.
d) This is false. The delivery charges are a necessary cost to obtain the equipment and prepare it for its initial use, so they would be added to the cost of the equipment.
e) This is false. That is a description of the historic cost concept.
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Consider the following information: direct materials used totaled $134,400; direct labor amounted to $396,800; overhead was computed to be $789,600; Work in Process Inventory on January 1, 2010, was $378,200; and Work in Process Inventory on December 31, 2010, was $385,200 . What was the cost of goods manufactured?
a. $1,313,800 b. $1,320,800 c. $1,327,800 d. $2,084,200
We may need to consider noncritical activities in estimating a project’s overall duration if ______.
a. the noncritical activities have little slack time b. the noncritical activities have a high variance c. both A and B d. neither A nor B
Could John Adams represent the Boston Massacre defendants if the Model Rules of Professional Conduct were in effect then?
What will be an ideal response?
Greta is going to buy a home entertainment center on installment with a down payment of $450 and 24 payments of $155. What is the installment price?