The uniform-delivered pricing strategy means that goods sold are placed free on board a carrier with the customer paying the freight from the factory to the destination
Indicate whether the statement is true or false
FALSE
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Rapid Enterprises applies manufacturing overhead to its cost objects on the basis of 75% of direct material cost. If Job 17X had $72,000 of manufacturing overhead applied to it during May, the direct materials assigned to Job 17X was:
A. $126,000. B. $72,000. C. $54,000. D. $96,000.
The amount of depletion of a coal mine in a year may differ from the depletion expense in the same year because
A) depletion expense includes other costs in addition to depletion. B) depletion is based on the passage of time, whereas depletion expense is not. C) the mine is not in operation all year. D) some coal is unsold at the end of the year.
Under which of the following circumstances is the installment sales method appropriate for the recognition of revenue in the income statement?
a. For any sales where collection is spread over a reasonable long period of time. b. In any situation where management wishes to delay the recognition of revenue in order to smooth its income. c. For sales where collection is spread over a reasonable long period of time and significant doubt exists about the ultimate collection of the receivables. d. For sales where collection is spread over a reasonable long period of time and no significant doubt exists concerning ultimate collection of the receivables.
The residual dividend policy implies that investors prefer to have the firm retain and reinvest earnings rather than pay them out in dividends if the rate of return the firm can earn on reinvested earnings:
A. is less than its cost of retained earnings. B. is less than its weighted average cost of capital (WACC). C. exceeds its cost of debt. D. exceeds the rate investors, on average, can earn themselves on other investments of comparable risk. E. is less than the discount rate offered by the firm on its dividend reinvestment plan (DRIP).