Slope of the line labeled "A" in the diagram is:
A) order rate.
B) rate of inventory demand.
C) production rate.
D) production rate minus rate of inventory demand.
Answer: C
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Autumn Resorts purchased guest room furniture on January 1, 2015 for $120,000 . The furniture has an estimated useful life of ten years. What amount will appear on Autumn's income statement for depreciation expense for the year ending June 30, 2016?
a. $1,000 b. $6,000 c. $10,000 d. $12,000
Which of the following indicators relating to lease capitalization is an example of IFRS criteria being more principles-based than GAAP with respect to lease accounting?
A) The title must transfer to the lessee at the end of the lease term. B) The present value of the payments must be at least 90% of the fair value of the asset. C) The lease term must be a major part of the economic life of the asset. D) The lease agreement must contain a bargain purchase option.
Which of the following is not considered an intangible asset?
a. A leasehold b. An oil well c. A franchise d. Goodwill
An example of a discretionary fixed cost would be:
a. property taxes. b. rent. c. insurance. d. depreciation. e. advertising.