If the ending inventory balance is understated, net income of the same period
a. will be overstated.
b. will be understated.
c. will be unaffected.
d. cannot be determined from the information.
B
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Scholfield Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below:Activity Cost PoolActivity MeasureActivity RateSupporting assemblyDirect labor-hours (DLHs)$6.55per DLHProcessing batchesNumber of batches$138.20per batchProcessing ordersNumber of orders$52.60per orderServing customersNumber of customers$1,191.00per customerThe cost of serving customers, $1,191.00 per customer, is the cost of serving a customer for one year.Latif Corporation buys only one of the company's products which Scholfield Enterprises sells for $15.60 per unit. Last year Latif Corporation ordered a total of 1,100 units of this
product in 2 orders. To fill the orders, 7 batches were required. The direct materials cost is $7.85 per unit and the direct labor cost is $1.90 per unit. Each unit requires 0.10 DLHs.According to the ABC system, the customer margin for this customer this past year was closest to: A. $6,435.00 B. $14,175.90 C. $3,450.90 D. $8,525.00
Which of the following would decrease variable costs?
a. Reduction in rent expense b. Reduction in research expenditure c. Reduction in salaries of administrative department d. Reduction in wages paid as direct labor
Research evidence suggests that when team members help each other, variability in group performance is reduced because of teammates being overloaded or distracted
Indicate whether the statement is true or false.
Provide a small example illustrating how random numbers are used in Monte Carlo simulation
What will be an ideal response?