Total variable costs change in proportion to changes in the volume of activity.
Answer the following statement true (T) or false (F)
True
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In testing for unrecorded retirements of equipment, an auditor most likely would:
A. select items of equipment from the accounting records and then locate them during the plant tour. B. compare depreciation journal entries with similar prior-year entries in search of fully depreciated equipment. C. scan the general journal for unusual equipment additions and excessive debits to repairs and maintenance expense. D. inspect items of equipment observed during the plant tour and then trace them to the equipment subsidiary ledger.
A breach of fiduciary duties by those who own a close corporation normally constitutes what is known as oppressive conduct.
Answer the following statement true (T) or false (F)
On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity where:
A) fixed costs are equal for two alternative locations. B) variable costs are equal for two alternative locations. C) total costs are equal for all alternative locations. D) fixed costs equal variable costs for one location. E) total costs are equal for two alternative locations.
[The following information applies to the questions displayed below.] The inventory records for Radford Co. reflected the following:Beginning inventory @ May 1100 units @ $4.00First purchase @ May 7300 units @ $4.40Second purchase @ May 17500 units @ $4.60Third purchase @ May 23100 units @ $4.80Sales @ May 31900 units @ $7.80If the company uses the weighted-average inventory cost flow method, what is the average cost per unit (rounded) for May?
A. $4.50 B. $4.45 C. $6.34 D. $5.12