High Inc. has an accounts receivable turnover ratio of 7.3. Low Company has an accounts
receivable turnover ratio of 5. Assuming that High and Low have the same sales level, which of the
following statements is correct?
A) Low Company has (on average) a lower accounts receivable balance than does High.
B) High has a higher accounts receivable balance on average than does Low Company.
C) High's average collection period is less than Low's.
D) Low's average collection period is less than High's.
C
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Kale Corporation's budgeted fixed factory overhead costs are $25,00 . per month plus a variable factory overhead rate of $8.00 per direct labor hour. The standard direct labor hours allowed for November production were 10,000 . An analysis of the factory overhead indicates that in November Kale had a favorable flexible-budget variance of $1,500 and an unfavorable production-volume variance of
$500 . Kale uses a two-variance analysis of overhead variances. The actual factory overhead incurred in October is: a. $105,500. b. $104,500. c. $106,500. d. $103,500.
Beginning inventory for the month contained 3,000 units that were 60 percent complete with respect to materials. During the month, 50,000 units were completed and transferred out. Ending inventory contained 5,000 units, 30 percent complete with respect to materials. The weighted average equivalent units of production for materials for the month would be
A) 50,000 B) 51,500 C) 50,300 D) 49,500
The professor wore both a belt and suspenders during lecture each day because he chose to:
A) Accept risk. B) Minimize risk. C) Share risk. D) Transfer risk.
The marketing concept states that the social and economic justification for an organization's existence is the satisfaction of customers' wants and needs while meeting organizational objectives.
Answer the following statement true (T) or false (F)