Which of the following methods of valuing an asset is based on the amount that a firm could acquire by selling the asset?

a. Replacement cost
b. Entry value
c. Exit value
d. Both a and b


ANSWER: C

Business

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The debits to Work in Process--Assembly Department for April, together with data concerning production, are as follows: April 1, work in process: Materials cost, 3,000 units $ 7,500 Conversion costs, 3,000 units, 80% completed 6,000 Materials added during April, 10,000 units 29,000 Conversion costs during April 35,000 Goods finished during April, 11,500 units --- April 30 work in process, 1,500

units, 60% completed --- All direct materials are placed in process at the beginning of the process and the average cost method is used to cost inventories. The conversion cost per equivalent unit (to the nearest cent) for April is: A) $2.70 B) $2.53 C) $3.31 D) $5.60

Business

Which statement about process batches is BEST?

A) One or more transfer batches may combine at the constrain buffer to form a process batch. B) A process batch is used to maximize setups at the bottleneck. C) A process batch must be greater than or equal to market demand. D) Process batches are used to increase lead time.

Business

A(n) ________ is a flexible standard for defining a security.

A. red herring prospectus B. investment contract C. certificate of interest D. debenture

Business

If a hypothesis test leads to the rejection of the null hypothesis,

a. a Type II error must have been committed. b. a Type II error may have been committed. c. a Type I error must have been committed. d. a Type I error may have been committed.

Business