At the beginning of 2021, Angel Corporation began offering a 1-year warranty on its products. The warranty program was expected to cost Angel 4% of net sales. Net sales made under warranty in 2021 were $180 million. Five percent of the units sold were returned in 2021 and repaired or replaced at a cost of $5.3 million. The amount of warranty expense in Angel's 2021 income statement is:
A. $27.0 million.
B. $5.3 million.
C. $7.2 million.
D. $9.0 million.
Answer: C
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An organization that is offering unique, superior products or services to a wide market is pursuing a strategy of
A. cost leadership. B. differentiation. C. cost focus. D. diversification. E. focused differentiation.
Allowance for Doubtful Accounts has a credit balance of $800 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates doubtful accounts of $16,000. Which of the following entries records the proper provision for doubtful accounts?
A) debit Uncollectible Accounts Expense, $800; credit Allowance for Doubtful Accounts, $800 B) debit Uncollectible Accounts Expense, $15,200; credit Allowance for Doubtful Accounts, $15,200 C) debit Allowance for Doubtful Accounts, $800; credit Uncollectible Accounts Expense, $800 D) debit Allowance for Doubtful Accounts, $16,800; credit Uncollectible Accounts Expense, $16,800
Referring to Scenario D.1, which of the following statements is BEST?
A) Making the cat food out of only eggs is optimal B) Making the cat food out of only eggs is less expensive than making it out of only tomatoes. C) Making the cat food out of only eggs means that the Vitamin B constraint would not be satisfied. D) Making the cat food out of only chicken means the Vitamin B constraint would not be satisfied.
A prerequisite for setting up a Kanban control system is ______.
a. determining the number of Kanban cards and containers b. determining the design of the Kanban cards c. determining whether the Kanban card is going to be used with MTO or ETO d. determining the color of the Kanban cards