Paolucci Corporation's relevant range of activity is 4,000 units to 8,000 units. When it produces and sells 6,000 units, its average costs per unit are as follows: Average Cost per UnitDirect materials$6.45 Direct labor$3.30 Variable manufacturing overhead$1.25 Fixed manufacturing overhead$3.00 Fixed selling expense$1.05 Fixed administrative expense$0.60 Sales commissions$1.00 Variable administrative expense$0.50 If 5,000 units are sold, the variable cost per unit sold is closest to:
A. $11.00
B. $17.15
C. $12.50
D. $14.00
Answer: C
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In terms of a foundation and framework for ethical guidelines, hedonism:
A) involves maximizing pleasure and minimizing pain B) offers a version of philosophy based on the Golden Rule, which means do unto others what you would have them do unto you C) involves balancing a variety of urges throughout a person's life D) offers guidelines regarding right and wrong as well as what is acceptable and what is not acceptable, within a geographic area
Types of Audit Opinions A CPA has completed an audit of the financial statements of a long-haul trucking company for the year ended December 31, 2014 . Prior to 2014, the company depreciated its trucks over 10 years. However, during 2014, the company
determined that a more realistic estimated life for its trucks was 8 years and computed the 2014 depreciation on the basis of the revised estimate. The CPA is satisfied that the 8 year estimate is reasonable, but the change will have a material effect on the comparability of the company's financial statements. The company adequately disclosed the change in estimated useful lives of its trucks and the effect of the change on 2014 income in a note to the financial statements. REQUIRED: Which type of audit report would you suggest be issued on the 2014 financial statements and why?
Which method focuses on assuring that the year-end balance sheet is correct and does not consider the impact of prior-year uncorrected misstatements reversing in later years?
a. Rollover. b. Iron curtain. c. Dual. d. Percentage.
What is a particular benefit of using the “Code of Ethics Toolkit” created by the Ethics & Compliance Initiative?
a. designing a code that will attract ethically strong employees to the business b. aligning an organization’s code with international standards of business c. designing codes that make employees aware of the legal ramifications of their actions d. designing codes for different departments that fit well with organization-wide ethics