Hedman Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (9,000 units)$270,000Variable expenses 202,500Contribution margin 67,500Fixed expenses 63,750Net operating income$3,750The margin of safety percentage is closest to:
A. 1%
B. 75%
C. 6%
D. 24%
Answer: C
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Which of the following statements is true regarding the two allowance methods used to account for bad debts?
a. The percentage of net credit sales approach takes into account the existing balance in the Allowance for Doubtful Accounts account. b. The direct write-off method takes into account the existing balance in the Allowance for Doubtful Accounts account. c. The percentage of accounts receivable approach takes into account the existing balance in the Allowance for Doubtful Accounts account. d. The direct write-off method does a better job of matching revenues and expenses.
Proper internal control over the inventory account would require that inventory items should be reviewed for obsolescence and proper accounting treatment
a. True b. False Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. For the vertical analysis of the balance sheet, the base amount is also the total of liabilities and stockholders' equity. 2. A common-size statement reports the same percentages that appear in a vertical analysis. 3. Dollar value bias is the bias one sees from comparing numbers in relative (dollars) rather than absolute (percentage) terms. 4. Benchmarking is the practice of comparing a company with other leading companies. 5. Benchmarking is the comparison of a company's current year results with a previous year's performance.
Which of the following is a method for measuring service quality?
A) SWOT analysis B) a market audit C) break-even analysis D) the critical incident technique E) market fulfillment