A basic concept of variable costing is that period costs should be currently expensed. What is the rationale behind this procedure?
a. Period costs are uncontrollable and should not be charged to a specific product.
b. Period costs are generally immaterial in amount and the cost of assigning the amounts to specific products would outweigh the benefits.
c. Allocation of period costs is arbitrary at best and could lead to erroneous decision by management.
d. Because period costs will occur whether production occurs, it is improper to allocate these costs to production and defer a current cost of doing business.
D
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The primary disadvantage of sampling is:
A) inability to target the sample effectively B) diminished effectiveness C) lack of visibility D) cost of producing and distributing the sample
Hobbs Manufacturing Co's static budget at 10,000 units of production includes $50,000 for direct labor and $7,000 for variable electric power. Total fixed costs are $30,000 . At 15,000 units of production, a flexible budget would show ________
a. variable costs of $85,500 and $36,000 of fixed costs b. variable costs of $75,000 and $30,000 of fixed costs c. variable costs of $85,500 and $24,000 of fixed costs d. variable and fixed costs totaling $115,500
What is leniency error?
What will be an ideal response?
Farnsworth has an instrument which was made "Payable to bearer." She loses the instrument, but it is found by Mellon. Mellon may
a. collect payment on the instrument. b. not collect payment because he gave no value for it. c. not collect payment on the instrument because he only found it. d. none of these.