Write a note on unit costs
What will be an ideal response?
Unit cost is the cost to produce each unit, including material and labor as well as any allocated overhead costs. In
equation form, we have: Unit cost = Variable cost + Fixed cost/Unit sales. Fixed costs are costs which stay constant
regardless of the number of units made (within limits). Examples include rent, depreciation, and insurance.
Variable costs are costs which vary according to the number of units made, such as parts and materials per unit, as
well as direct production labor per unit.
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Neutral Paints Company uses the direct method for preparing its statement of cash flow
Neutral reports the following information regarding 2017: From the income statement: Sales Revenues, $266,000 Cost of Goods Sold, $215,000 Operating Expenses, $37,000 From the balance sheet: Beginning Balance Ending Balance Accounts Receivable $14,500 $18,000 Merchandise Inventory 23,800 17,800 Accounts Payable 6,200 13,700 Accrued Liabilities 4,400 1,500 What amount will be shown for payments to suppliers for operating expenses? (Accounts Payable are for purchases of merchandise inventory only, and Accrued Liabilities relate to operating expenses.) A) $39,900 B) $37,000 C) $35,500 D) $41,400
If you agree to allow the lender to take your computer in the event you fail to make payments, the loan is which of the following?
A) Amortized B) Unsecured C) Secured D) Interest free
The key element of effective teamwork is
A. strong presentation skills. B. striving for perfection. C. homogeneity among members. D. adequate compensation. E. commitment to a common purpose.
Discount stores differ from off-price retailers in that discount stores ________
A) sell limited selections of designer labels at steep discounts B) use e-commerce technologies to sell over the Internet C) offer a limited range of convenience goods, long service hours, and quick checkouts D) feature a wide variety of aggressively priced everyday merchandise E) focus on specific products on a massive scale and dominate retail sales in respective products categories