China Manufacturing Agents, Inc. is preparing a five-year plan. Today, sales are $1,000,000. If the growth rate in sales is projected to be 10 percent over the next five years, what will the dollar amount of sales be in year five?
What will be an ideal response?
FV = 1,000,000(1.1)5 = $1,610,510
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If the amount applied is less than actual overhead cost incurred, the difference is called ____________________
Fill in the blank(s) with correct word
Correction of an error involves corrections to reported financial statements similar to changes in estimates
Indicate whether the statement is true or false
The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $15,500,000 and the actual machine hours are 220,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate?
A) $71 per machine hour B) $78 per machine hour C) $68 per machine hour D) $75 per machine hour
______________ accounting comes from the concept that management can manipulate the financial results of a company by adding or taking away reserves depending on the circumstances.
a. Hypothetical b. Lease accounting c. Cookie jar d. Virtual