When the manager of a Denny's Restaurant offers a customer a coupon for a free meal as compensation for slow service, the manager is focusing on
A. a diversification strategy.
B. customer lifetime value.
C. short-term profits.
D. product development.
E. differentiation.
Answer: B
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A $310 credit to Supplies was credited to Fees Earned by mistake. By what amounts are the accounts under- or overstated as a result of this error?
A. Supplies, understated $620; Fees Earned, overstated $310. B. Supplies, understated $310; Fees Earned, overstated $310. C. Supplies, overstated $620; Fees Earned, understated $310. D. Supplies, overstated $310; Fees Earned, overstated $310. E. Supplies, overstated $310; Fees Earned, understated $310.
How is short-run decision analysis used in the planning stage of the management process?
Horton Company adopted a standard cost system several years ago. The standard costs for the prime costs of its single product are as follows: Material: 8 kilograms @ $5 per kilogram$40.00 Labor: 6 hours @ $8.20 per hour$49.20 The following operating data were taken from the records for November: Units completed 5,600unitsBudgeted output 6,000unitsPurchase of materials 50,000kilogramsTotal actual labor costs$300,760 Actual labor hours 36,500hoursMaterial efficiency (quantity) variance$1,500unfavorableTotal material variance$750unfavorableRequired:(Be sure to indicate whether the variances are favorable or unfavorable and show your work.) a. What is the direct labor rate variance for November?b. What is the direct labor efficiency variance for November?c. What is the
actual kilograms of material used in the production process during November?d. Assume the purchasing department is responsible for the material price variance, what is the actual price paid per kilogram of material during November (assume no increase/decrease in inventory during the month)? What will be an ideal response?
The Excel LP model for this scenario shows the following sensitivity report for the variable cells . Comment on the salient features
Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $C$2 Newspaper 0 -1000 5000 1000 1E+30 $D$2 Radio 13.76 0 3000 333.3333333 500 $E$2 Twitter 0 -800 700 800 1E+30 $F$2 Facebook 4 0 200 1E+30 2