Define indirect materials and give two examples of indirect materials for a manufacturing company
What will be an ideal response
Indirect materials are used in making a product but either cannot be conveniently traced to specific, finished products or are not large enough to justify tracing to the specific product. Examples include glue used in making tables and manufacturing supplies.
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What losses should not affect the recorded cost of inventories?
a. Normal losses b. Abnormal losses c. Seasonal losses d. Standard losses
Which of the following is the BEST negative reply to a request for a favor?
a. Thank you for asking me to speak at your meeting, but I will not be able to attend. b. Because I have a previous engagement in Phoenix, I cannot demonstrate my machine at your conference. c. Although I have multiple obligations for the date you suggested, I fully support your effort to raise funds for the homeless. d. I find my schedule is as impossible as ever; I must be doing something wrong with my priorities.
A major criticism of competence-based pay systems is that after achieving the top wage, employees may be reluctant to continue their educational training.
Answer the following statement true (T) or false (F)
Which of the following provides a key in analyzing short-term business decisions?
A) focus on costs that do not change under two alternatives and on historic costs B) focus on qualitative data only and ignore future cash flows C) focus on sunk costs and quantitative data D) focus on relevant costs and use the contribution margin approach