Loan proceeds are not directly tied to

a. sales revenue.
b. expenses.
c. meeting cash-flow problems.
d. planned expansion of a firm.


ANSWER: a

Business

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The most valid reason for using something other than a full-cost-based transfer price between units of a company is because a full-cost price

a. is typically more costly to implement. b. does not ensure the control of costs of a supplying unit. c. is not available unless market-based prices are available. d. does not reflect the excess capacity of the supplying unit.

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Asteroid Industries accumulated the following cost information for the year:     Direct materials$16,000 Indirect materials 4,000 Indirect labor 8,500 Factory depreciation 12,800 Direct labor 37,000  Using the above information, total factory overhead costs equal:

A. $25,300. B. $12,800. C. $53,000. D. $16,800. E. $78,300.

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A company can be viewed by different customers as _______________.

a. Only of high quality b. Only of low quality c. Only as being of neither high nor low quality d. Either high or low quality (depending on the customer)

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