Fact Pattern 12-1BSal contracts with Tasty Pizza Company to deliver its products. Both parties change their minds, however, and inform each other that they would like to cancel the contract.Refer to Fact Pattern 12-1B. The next day, Sal changes her mind and again offers to deliver Tasty's products. Tasty is willing to deal, but for a new price. Sal and Tasty
A. may agree to a new contract, but it cannot include a new price.
B. may agree to a new contract that includes the new price.
C. must perform their original contract.
D. must perform the part of their original contract that is executory.
Answer: B
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Answer the following statements true (T) or false (F)
1) Performance evaluation systems provide top management with a framework for maintaining control over the entire organization. 2. Communicating top management's expectations to segment managers improves goal congruence. 3. The practice of comparing a company's achievements against the best practices in the industry is known as goal congruence. 4. In decentralized companies, performance evaluation systems provide upper management with the feedback it needs to maintain control over the entire organization. 5. Goal congruence is the practice of comparing the company's achievements against the best practices in the industry.
Minstrel Manufacturing uses a job order costing system. During one month Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to record the application of factory overhead to production is:
A. Debit Work in Process Inventory $225,000; credit Factory Overhead $225,000. B. Debit Work in Process Inventory $165,000; credit Factory Overhead $165,000. C. Debit Work in Process Inventory $165,000; credit Factory Payroll $165,000. D. Debit Factory Overhead $165,000; credit Work in Process Inventory $165,000. E. Debit Factory Payroll $150,000; credit Work in Process Inventory $150,000.
Answer the following statements true (T) or false (F)
For all defined contribution plans, funding is shared by the employer and employee.
Discuss how a managerial accounting report prepared for an internal user might differ from a financial accounting report prepared for an external user