Junior Bodway, Inc., has provided the following budgeted data: Sales 10,000unitsSelling price$50per unitVariable expense$30per unitFixed expense$180,000 What is the company's break-even point in sales dollars?
A. $500,000
B. $300,000
C. $450,000
D. $180,000
Answer: C
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If a company uses the allowance method of accounting for bad debts, which one of the following statements is true?
a. It will report accounts receivable in the balance sheet at their net realizable value b. It will record bad debts only when an account is determined to be uncollectible. c. It will reduce the accounts receivable at the end of the accounting period for estimated uncollectible accounts. d. It violates the matching principle.
Changing pricing policies will lead to direct cost implications immediately
Indicate whether the statement is true or false
Which of the following statements is true about management compensation?
a. The use of stock options as compensation can result in short–term dysfunctional behavior. b. Stock–based management compensation is provided to encourage managers to have a long term view in their decision making process. c. Under stock–based compensation, a manager may not be rewarded even if his or her individual performance is very good. d. All of these choices are true.
Clyde Retailers is a local merchandiser which buys vintage clothing and sells it to local college students. Clyde began the year with inventory costing $60,000. During the year inventory costing $300,000 was purchased. At the end of the year, inventory costing $45,000 still remained. What was Clyde's cost of goods sold for the year?
A) $255,000 B) $285,000 C) $300,000 D) $315,000