Warranty claims and adjustments are examples of
A) prevention costs.
B) appraisal costs.
C) internal failure costs.
D) external failure costs.
D
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The Davis Corporation budgeted factory overhead at $250,00 . for the period for the Assembly Department based on a budgeted volume of 100,00 . direct labor hours. At the end of the period, the factory overhead control account for the Assembly Department had a balance of $252,000 . The actual (and allowed) direct labor hours were 103,000. What was the over- or underapplied factory overhead for the
period? a. $3,00 . underapplied b. $3,00 . overapplied c. $5,500 underapplied d. $5,500 overapplied
Fact Pattern 24-1BDominion Sales Ltd. in Canada and Eagle Buying Company in the United States enter a contract for a sale of forestry products. Dominion draws a draft unconditionally ordering Great Federal Bank, Eagle's bank, to pay $60,000 to Dominion's order in sixty days. Eagle signs and dates the draft.Refer to Fact Pattern 24-1B. This instrument is
A. a banker's acceptance. B. a nonnegotiable instrument. C. a promissory note. D. a trade acceptance.
A company has earnings per share of $9.60. Its dividend per share is $0.50, its market price per share is $110, and its book value per share is $96. Its price-earnings ratio equals:
A. 0.87. B. 10.0. C. 19.2. D. 1.15. E. 11.46.
Your firm is considering investing in one of two mutually exclusive projects. Project A requires an
initial outlay of $3,500 with expected future cash flows of $2,000 per year for the next three years. Project B requires an initial outlay of $2,500 with expected future cash flows of $1,500 per year for the next two years. The appropriate discount rate for your firm is 12% and it is not subject to capital rationing. Assuming both projects can be replaced with a similar investment at the end of their respective lives, compute the NPV of the two chain cycle for Project A and three chain cycle for Project B. A) $2,865 and $94 B) $3,528 and $136 C) $5,000 and $1,500 D) $2,232 and $85