A major disadvantage of the observation method of analyzing cost behavior is:
a. It bases its solution on only two observations.
b. It results in its analyzed cost being treated as either fixed or variable, based on which type of behavior it more closely resembles.
c. Two persons could draw different lines through the data points.
d. It enables non-representative points, called outliers, to be identified.
b
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What is the best course of action if you are unsure whether your information is common knowledge?
a. Informally poll your friends. b. Cite the source, just to be safe. c. Check multiple sources for consistency. d. Follow your instincts.
Common law is the legal system of England and countries that were once English colonies
Indicate whether the statement is true or false
Sanchez Company's output for the current period was assigned a $200,000 standard direct materials cost. The direct materials variances included a $5,000 favorable price variance and a $3,000 unfavorable quantity variance. What is the actual total direct materials cost for the current period?
A. $205,000. B. $208,000. C. $198,000. D. $192,000. E. $202,000.
The production manager for the Coory soft drink company is considering the production of two kinds of soft drinks: regular (R) and diet(D). Two of the limited resources are production time (8 hours = 480 minutes per day) and syrup (1 of the ingredients),
limited to 675 gallons per day. To produce a regular case requires 2 minutes and 5 gallons of syrup, while a diet case needs 4 minutes and 3 gallons of syrup. Profits for regular soft drink are $3.00 per case and profits for diet soft drink are $2.00 per case. What is the time constraint? A) 2D + 4R ? 480 B) 2R + 3D ? 480 C) 3R + 2D ? 480 D) 2R + 4D ? 480