Ivan runs a bakery. He has lots of bills to pay: electricity, rent for the shop, the staff’s wages, flour for bread, cakes and pastries, spelt for his special spelt loaf etc. His accountant says it is important to classify these costs correctly so that he can set the right prices for his products. How would you classify the cost of the spelt?
a. fixed and direct
b. variable and direct
c. fixed and indirect
d. variable and indirect
e. marginal
b. variable and direct
You might also like to view...
Because of the open-air configuration of upscale specialty stores, coupled with entertainment and restaurants, ________ are very convenient for shoppers.
A. off-price centers B. lifestyle centers C. regional malls D. outlet centers E. convenience centers
Donner Company is selling a piece of land adjacent to their business. An appraisal reported the market value of the land to be $120,000. The Focus Company initially offered to buy the land for $107,000. The companies settled on a purchase price of $115,000. On the same day, another piece of land on the same block sold for $122,000. Under the cost concept, what is the amount that will be used to
record this transaction in the accounting records? A) $107,000 B) $115,000 C) $120,000 D) $122,000
Which of the following decision-making techniques is best for a group that wants to avoid face-to-face confrontations?
a. Delphi technique b. Ringi technique c. Nominal group technique d. Stepladder technique
What does the Substitutes for Leadership Model propose and when might it be utilized?
What will be an ideal response?