Which of the following would be classified as a prime cost?
A) cost of direct materials used
B) depreciation on factory equipment
C) salary of sales personnel
D) depreciation on office furniture
A) cost of direct materials used
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Visualization requires people to create a collage from magazine photos or drawings to depict their perceptions
Indicate whether the statement is true or false
What is the one acute problem of dichotomous questions?
A) There is potential for position bias. B) It is difficult to obtain information on alternatives not listed. C) The response can be influenced by the wording of the question. D) none of the above
During August, Boxer Company sells $356,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $12,800 before adjustment. Customers returned merchandise for warranty repairs during the month that used $9,400 in parts for repairs. The entry to record the estimated warranty expense for the month is:
A. Debit Estimated Warranty Liability $17,800; credit Warranty Expense $17,800. B. Debit Estimated Warranty Liability $9,400; credit Warranty Expense $9,400. C. Debit Warranty Expense $14,400; credit Estimated Warranty Liability $14,400. D. Debit Warranty Expense $17,800; credit Estimated Warranty Liability $17,800. E. Debit Warranty Expense $5,000; credit Estimated Warranty Liability $5,000.
Both process and job order cost systems maintain perpetual inventory accounts with subsidiary ledgers
Indicate whether the statement is true or false