Patterson and Clay Companies both use cost-plus pricing formulas and arrived at a selling price of $1,000 for the same product. Patterson uses absorption manufacturing cost as the basis for computing its dollar markup whereas Clay uses total cost. Which of the following choices correctly denotes the company that would have (1) the higher cost basis for deriving its dollar markup and (2) the higher markup percentage? Cost BasisMarkup PercentageA.PattersonPattersonB.PattersonClayC.ClayPattersonD.ClayClayE.More information is needed to judge.
A. Choice A
B. Choice B
C. Choice C
D. Choice D
E. Choice E
Answer: C
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Modern Designs is a new business. During its first year of operations, credit sales were $43,000 and collections of credit sales were $34,000. One account, $625, was written off. Management uses the percent-of-sales method to account for bad debts expense and estimates 3% of credit sales to be uncollectible. Bad debts expense for the first year of operations is ________.
A) $665 B) $1290 C) $625 D) $2310
The cost of production report summarizes (1 ) the units for which the department is accountable and the units to be assigned costs and (2 ) the costs charged to the department and the allocation of those costs
Indicate whether the statement is true or false
Souffront Corporation manufactures and sells one product. In the company's first year of operations, the variable cost consisted solely of direct materials of $97 per unit. The annual fixed costs were $1,416,000 of direct labor cost, $3,776,000 of fixed manufacturing overhead expense, and $1,650,000 of fixed selling and administrative expense. The company does not have any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, the company produced 59,000 units and sold 55,000 units. The company's only product is sold for $251 per unit. The net operating income for the year under super-variable costing is:
A. $1,980,000 B. $1,240,000 C. $1,724,000 D. $1,628,000
To answer a question such as "At what time of day does our company sell the most products?" you would use ________ data mining
A) query-driven B) customer profiling C) model-driven D) behavioral