In accounting, the recording of the cost of goods sold occurs at the time of the sale, but the cash flow may take place over an extended time period
Indicate whether the statement is true or false.
Answer: TRUE
You might also like to view...
In the two-period model, suppose a household's income in the first period is $40,000, income in the second period is $30,000, and the real interest rate is 25 percent. Draw a diagram showing the budget constraint. Now, suppose the real interest rate rises to 30 percent. Draw the new budget constraint. For the budget constraints you have drawn, be sure to show the values of the intercepts on each axis. If the household decides that its consumption in period 1 should always equal its consumption in period 2, determine whether the household is worse off or better off because of the decline in the real interest rate. Show your work.
What will be an ideal response?
Irene Manufacturing uses a predetermined overhead allocation rate based on direct labor cost. At the beginning of the year, the company estimated total manufacturing overhead costs at $1,020,000 and total direct labor costs at $820,000. In June, Job 711 was completed. The details of Job 711 are shown below.
How much was the cost per unit of finished product? (Round any percentages to two decimal places and your final answer to the nearest cent.)
A) $157.50
B) $197.70
C) $169.70
D) $219.70
A(n)__________is an intermediary who brings a buyer and a seller together
Fill in the blanks with correct word.
A primary advantage of organizing economic activity within firms is the
A. ability to coordinate highly complex tasks to allow for specialized division of labor. B. eradication of the principal-agent problem. C. low administrative costs because of reduced bureaucracy. D. high-powered incentive to work as salaried employees for an existing firm.