Multiplying the standard price of direct materials by the standard quantity for direct materials yields
a. the direct materials price variance.
b. the direct materials quantity variance.
c. the standard direct materials cost.
d. nothing; the two components should be added together.
C
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When testing cash balances at the balance sheet date, the auditor foots the bank reconciliation and traces its reported book balance to the trial balance and its bank balance to the standard confirmation. Which of the following assertions is being tested with these procedures?
a. Rights. b. Valuation. c. Existence. d. All of the above.
An expense account is closed with a credit to the expense account and a debit to Income Summary
Indicate whether the statement is true or false
If a leader has no plan, then the team will have no plan.
a. True b. False
If the daily demand is 30 and the lead time in days is 3, what is the reorder point?
A company distributes repair parts for high-end appliances. The annual demand is 81,000 and the company operates 300 days per year. The annual carrying cost is 20% of the item cost, which is $500. The ordering cost is estimated at $60 and the shortage cost is $150.