The asymmetrical change in costs when there is a decrease in the volume of activity is called ________.
A) cost stickiness
B) contribution costs
C) curvilinear costs
D) cost adhering
A) cost stickiness
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Mountain Company produced 20,00 . blankets in June to be sold during the holiday season. The manufacturing costs were: Direct materials $125,000 Direct labor 55,000 Factory overhead 60,000 Management has decided that the mark-on percentage necessary to
cover the product's share of selling and administrative expenses and to earn a satisfactory profit is 30%. The selling price per blanket should be: a. $12.00. b. $15.60. c. $23.60. d. $31.20.
Mr. Olsen has a marginal tax rate on ordinary income of 37 percent. He currently earns $100,000 per year through a business operated as a sole proprietorship. If Mr. Olsen does not require current cash from the business, calculate the potential increase or decrease in his annual tax liability if he incorporates and operates the business through a regular corporation.
A. $16,000 decrease B. $16,000 increase C. $3,000 decrease D. No increase or decrease
Design capacity is ______.
a. the maximum rate of output achieved by an operation, a process, or a manufacturing or service facility that is producing under ideal conditions b. the capacity that can be achieved given the actual changes in product mix, machines and equipment that require periodic maintenance, scheduling changes, and workers who take time off for lunch, absences, and other needs c. less than effective capacity d. dependent on the company‘s market share
A manager should review the scope of authority granted to the company's workers and consider the company's potential liability for the actions of those workers
a. True b. False Indicate whether the statement is true or false