Williams manufactures a variety of iron products, made to customer specifications, in small batches. Willie Williams, owner, is concerned that he does not have an accurate understanding of the costs of production. You, a newly-minted MBA, have researched his business and identified various costs and cost drivers.
The service departments (Janitorial, HR, and Data Services) are allocated to the two production departments (Welding and Assembly). Janitorial costs are allocated using square feet, HR using number of employees, and Data Services using number of transactions. You recall that there are several approaches to the allocation of service department costs, direct, step-down and reciprocal methods.
If the step-down method is applied, allocating the most costly department first, which is true?
A. Janitorial's total costs after allocation are $18,036.48
B. Assembly's total costs after allocation are less than $100,000
C. Janitorial is allocated $3,953.28 from Data Svcs
D. HR's total costs after allocation are $50,160
E. None of the above
C. Janitorial is allocated $3,953.28 from Data Svcs
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Income taxes payable are recognized as an expense once they are paid to the respective government or taxing authority
a. True b. False Indicate whether the statement is true or false
Camp, Inc exchanged an old truck that cost $30,000 (now 50% depreciated) with a current fair value of $18,000 for equipment with an appraised value of $25,000. In addition, Camp paid cash of $6,000. At what value should Camp record the new equipment?
A) $25,000 B) $24,000 C) $22,000 D) $21,000
Which of the following statements is true about channel-originated promotion?
A) It is directed at intermediate channels of distribution. B) It is run by the channel, either to the next channel in the distribution chain or to final customers. C) It is an attempt to get the channels of distribution to stock more of a product. D) It comes directly to the customer from the manufacturer.
Low-power parties are not usually in a position to trigger and advance an integrative process.
Answer the following statement true (T) or false (F)