The fact that a gas station in Texas pays less for fuel than a gas station in Maine from a producer in Louisiana suggests that refineries are using which of the following pricing methods?
A. Price differentiation
B. Base-point pricing
C. Freight absorption pricing
D. Transfer pricing
E. Zone pricing
Answer: E
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Equipment risks are external risks
Indicate whether the statement is true or false
Activity A has a standard cost of $500 and the standard time to complete Activity A is 5 weeks. The crash time for Activity A is 3 weeks and the crash cost is $600. What is the crash cost per week for Activity A?
A) $50 B) $100 C) $150 D) $200 E) $300
Darrin Products uses a job-costing system for its units, which pass from the Machining Department, to the Assembly Department, to finished-goods inventory. The Machining Department is heavily automated; in contrast, the Assembly Department performs a number of manual-assembly activities. The company uses machine hours to apply manufacturing overhead to products in the Machining Department, and direct labor cost to apply manufacturing overhead to products in the Assembly Department.The following information relates to the Machining Department for the year just ended:Budgeted manufacturing overhead$12,000,000Actual manufacturing overhead12,142,000Budgeted machine hours 800,000Actual machine hours794,000The Machining Department data that follow pertain to job no. 775, the only job in
production at year-end.Direct materials$125,000Direct labor cost61,800Machine hours550Required: A. Assuming the use of normal costing, calculate the predetermined overhead rate that is used in the Machining Department.B. Compute the cost of the Machining Department's year-end work-in-process inventory.C. Determine the amount that overhead was under- or overapplied during the year in the Machining Department. Indicate whether it is overapplied or underapplied.D. If Darrin disposes of the Machining Department's under- or overapplied overhead as an adjustment to Cost of Goods Sold, would the company's Cost-of-Goods-Sold account increase or decrease? Explain.E. How much overhead would have been charged to the Machining Department's Work-in-Process account during the year?F. Comment on the appropriateness of direct labor cost to apply manufacturing overhead in the Assembly Department. What will be an ideal response?
What is the best financial metric to show the profit an organization generates in relationship to assets utilized?
a. ROA b. Profit c. Return on net worth d. Stock price