With bureaucratic control, business units are treated as profit centers, and their managers are evaluated based on profit and loss.
Answer the following statement true (T) or false (F)
False
Market control involves the use of pricing mechanisms to regulate activities in organizations as though they were economic transactions. Business units may be treated as profit centers and trade resources (services or goods) with one another via such mechanisms. Managers who run these units may be evaluated on the basis of profit and loss.
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Adams Corporation's accounting records include the following items for the year ending December 31, 2019:
The income tax rate for the company is 25%. Prepare Adams' multi-step income statement for the year ended December 31, 2019. Omit earnings per share.
A(n) ________ occurs when one person agrees to answer for the debts or duties of another person
A) main purpose exception B) mortgage C) guaranty contract D) implied integration
The production department started the month with a beginning goods in process inventory of $20,000. During the month, it was assigned the following costs:
a. $330,000. b. $ 17,000. c. $220,000 d. $112,000. e. $118,000.
Discount Sales Company uses a standard cost system
Variable overhead costs are allocated based on direct labor hours. In the first quarter, Discount Sales had a favorable cost variance for variable overhead costs. Which of the following scenarios is a reasonable explanation for this variance? A) The actual number of direct labor hours was lower than the budgeted hours. B) The actual variable overhead costs were higher than the budgeted costs. C) The actual variable overhead costs were lower than the budgeted costs. D) The actual number of direct labor hours was higher than the budgeted hours.