ABC costing might lead to:
A. increasing low-volume products that appear to be profitable.
B. decreasing high-volume products that appear to be unprofitable.
C. increasing materials cost.
D. increasing the sales price of high-volume products.
E. increasing the sales price of low-volume products.
Answer: E
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Which of the following is NOT a direct financial cost of inventory?
a. cost of utilities b. opportunity cost of capital locked up in inventory c. interest paid on capital d. all of the above are direct financial costs of inventory
The following transactions for the month of March have been journalized and posted to the proper accounts
Mar. 1 The business received $7,000 cash and issued common stock to stockholders. Mar. 2 Paid the first month's rent of $500. Mar 3 Purchased equipment by paying $2,000 cash and executing a note payable for $6,000. Mar. 4 Purchased office supplies for $700 cash. Mar. 5 Billed a client for $12,000 of design services completed. Mar. 6 Received $9,000 on account for the services previously recorded. What is the balance in Accounts Receivable? A) $9,000 B) $3,000 C) $6,000 D) $12,000
____ competitors are those that compete in the same product class, but their products have different features, benefits, and prices.
A. Total budget B. Generic C. Brand D. Product E. Price
Which of the following statements is(are) true?(A) Theoretical capacity is the long-run expected volume based on reasonably attainable working conditions.(B) The cost of excess capacity is allocated to individual cost objects using the cost driver rate.
A. Only A is true. B. Only B is true. C. Both of these are true. D. Neither of these is true.