Phelps Company manufactures custom-designed filtering equipment for swimming pools and tanks. In May 2014, the company incurred the following costs of quality: Product design costs $ 8,600 Product recall costs 5,200 Product simulation costs 13,500 Product testing costs 3,500 Product warranty claims 2,000 Scrap and rework costs 3,000 Total quality costs of conformance for May were
A) $27,600.
B) $11,600.
C) $25,600.
D) $22,100.
C
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Marco’s parents never used a calendar and constantly referred to planning as stifling. In his sales role, his boss always wants to see his calendar. When he first agreed to keep a calendar, he was reluctant and felt stifled, and experienced cognitive dissonance between his beliefs and his actions. Overtime, he began to recognize that keeping a calendar helped with communication with his boss, and even had a positive effect on his sales. Marco’s cognitive dissonance was reduced by which of the following?
A. change the behavior B. change the belief C. have congruous thoughts D. rationalize the inconsistency
You have just received notice that Agnes Fisher, a customer of yours with an Accounts Receivable balance of $200, has gone bankrupt and will not be making any future payments. Assuming you use the allowance method, the journal entry you make is to
A) debit Uncollectible Accounts Expense and credit Accounts Receivable. B) debit Allowance for Uncollectible Accounts and credit Uncollectible Accounts Expense. C) debit Uncollectible Accounts Expense and credit Allowance for Uncollectible Accounts. D) debit Allowance for Uncollectible Accounts and credit Accounts Receivable.
Assume that a factory seeks to allocate rent to several departments that occupy the factory. The factory is occupied by all the departments. Which of the following is the most logical cost driver for allocating the factory rent?
A. Machine hours B. Number of employees C. Number of labor hours in each department D. Square footage occupied by each department
The inventory valuation method that has the advantages of assigning an amount to inventory on the balance sheet that approximates its current cost, and also mimics the actual flow of goods for most businesses is:
A. FIFO. B. LIFO. C. Weighted average. D. Specific identification. E. Lower of cost or market.