A company has provided a sales budget for the next four months (January, February, March, and April). It bases its production budget on the sales budget, and has a policy that each month's ending inventory of finished product must be equal to 25% of the following month's sales needs. The direct materials purchases budget is based on the production budget. The company's policy for each month's
ending inventory of raw materials is that they must be equal to 10% of the following month's production needs for raw materials. Given this information, the company can prepare direct materials purchases budgets for how many months?
A) one
B) two
C) three
D) four
E) five
B
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The normal operating cycle helps define which of the following balance sheet sections?
a. Intangible assets b. Current assets c. Property, plant, and equipment d. Stockholders' equity
Croce, Inc., is investigating an investment in equipment that would have a useful life of 7 years. The company uses a discount rate of 8% in its capital budgeting. The net present value of the investment, excluding the salvage value, is ?$515,967. To the nearest whole dollar how large would the salvage value of the equipment have to be to make the investment in the equipment financially attractive? (Ignore income taxes.)Refer to Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.
A. $885,021 B. $41,277 C. $6,449,588 D. $515,967
The unit contribution margin divided by the selling price per unit is the ________.
What will be an ideal response?
Favorable variances are contra expenses and therefore decrease Cost of Goods Sold
Indicate whether the statement is true or false