How can a company leverage economies of scale to its benefit?
What will be an ideal response?
A successful answer should give one or more examples of the use of economies of scale for benefit. For example, a company can purchase in high volume to reduce purchase cost per unit.
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Answer the following statements true (T) or false (F)
1. In a standard costing system, each input of direct materials, direct labor, and manufacturing overhead has a cost standard and an efficiency standard. 2. A standard cost system helps management set performance standards. 3. A favorable direct materials cost variance occurs when the actual direct materials cost incurred is less than the standard direct materials cost. 4. A favorable direct materials cost variance occurs when the actual direct materials cost incurred is greater than the standard direct materials cost. 5) Favorable and unfavorable variances are netted together in the same way debits and credits are.
Distance delivery formats are inappropriate for:
A) ?company-wide addresses. B) ?persuasive or problem-solving meetings. C) ?large, high-exposure activities. D) ?new product launches.
Which of the following measures the percentage of sales revenue a firm can retain after all expenses are deducted from gross revenues?
A. gross profit B. net margin C. operating margin D. working capital
Which of the following is true of Finished Goods Inventory?
A) Finished Goods Inventory is an account used by a manufacturer and includes completed goods that have not yet been sold. B) Finished Goods Inventory is an account used by a merchandiser and includes completed goods that have not yet been sold. C) Finished Goods Inventory is an account used by service companies in lieu of raw materials inventory. D) Finished Goods Inventory is an account used by a manufacturer in lieu of raw materials inventory.