Cash equivalents would include:
A. a 30-day bank certificate of deposit.
B. a 6-month U.S. treasury bill.
C. the amount in the petty cash fund.
D. the balance in the company's savings account.
Answer: A
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Poseidon Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. Poseidon uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows:
Direct materials: 4 pounds per unit; $4 per pound Direct labor: 4 hours per unit; $15 per hour Poseidon produced 5000 units during the quarter. At the end of the quarter, an examination of the labor costs records showed that the direct labor cost variance was $6000 F. Which of the following is a logical explanation for this variance? A) The company used fewer labor hours than allowed by the standards. B) The company paid a lower cost per hour for labor than allowed by the standards. C) The company used a lower quantity of direct materials than allowed by the standards. D) The company paid a lower cost for the direct materials than allowed by the standards.
Pat thought he had received the best deal on his new car. Shortly after the purchase, Pat started to notice certain disadvantages of his new car as he learned more about other cars available. Pat is experiencing ________
A) perceived risk B) multitasking C) cognitive dissonance D) sensory marketing E) consumerism
______ is the ability to use logical proof to demonstrate the reasonableness of argument(s).
Fill in the blank(s) with the appropriate word(s).
Buckeye Inc. uses the sales forecast to plan production. The company produces a glow-in-the-dark cup called "Lights-Out" one month in advance of the forecasted sale
The January sales forecast of 20 units of these cups will be scheduled for December production. However, the company also notes that sales forecasts and actual sales can differ, and the company has a policy of having 20% in inventory to accommodate sales above forecast. Raw materials for Lights-Out are acquired the month ahead (in this case, November). Wages are paid in the current month of production (December). Utilities are paid a month after production (January) and shipping is paid a month after the sale (two months after production, February). Finally, an inventory count reveals that there are currently 4 units on hand above the projected sales for November (at the start of November when the raw material order is placed). Unit production costs are $40 for raw materials, $20 for wages, $10 for utilities, and $5 for shipping. Determine the amounts of cash outflows for December's production. A) Raw material of $800 paid in November, Wages of $400 paid in December, Utilities of $200 paid in January, Shipping of $100 paid in February B) Raw material of $800 paid in November, Wages of $400 paid in December, Utilities of $100 paid in January, Shipping of $100 paid in February C) Raw material of $800 paid in November, Wages of $400 paid in December, Utilities of $200 paid in January, Shipping of $200 paid in February D) Raw material of $400 paid in November, Wages of $800 paid in December, Utilities of $200 paid in January, Shipping of $100 paid in February