Chancellor Industries, a manufacturing company, prepays its insurance coverage for a two-year period. The premium for two-year's worth of coverage is $14,400 and is paid at the beginning of the first year. Two-thirds of the premium relates to factory operations and one-third relates to selling and administrative activities. The amount of premium that should be recorded as a product cost for the
first year is:
A) $ 4,800.
B) $ 2,400.
C) $ 9,600.
D) $14,400.
A
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A toy placed inside a box of cereal is an example of a(n):
A) bonus pack B) in-package premium C) store premium D) self-liquidating premium
Stealth Software Inc Stealth Software Inc has the following information available from last year for one of its software products: Sales revenue $50,000 Variable costs 15,000 Fixed costs 10,000 Net operating income $25,000 Refer to the Stealth Software Inc information above. If the software had a sales price of $20 per unit, what is the contribution margin per unit?
A) $10 B) $6 C) $14 D) $20
Using the following accounts and a predetermined overhead rate of 90% of direct labor cost, determine the amount of applied overhead.Work in Process InventoryBeginning WIP17,600 Direct materials52,800 Direct labor? Applied overhead? To finished goods ?Ending WIP36,080 Finished Goods InventoryBeginning FG5,200 201,520 Ending FG
A. $167,200. B. $79,200. C. $88,000. D. $34,320. E. $35,376.
Through diversification it is possible to eliminate all of the company-specific risk inherent in owning stocks. However, as a general rule it will not be possible to eliminate systematic (market) risk
Indicate whether the statement is true or false