The high-low method requires three observations of costs to calculate the cost formula.
Answer the following statement true (T) or false (F)
False
The high-low method requires two observations of cost, not three, to calculate the cost formula.
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Point Company uses the standard costing method. The company's main product is a fine-quality audio speaker that normally takes 0.25 hour to produce. Normal annual capacity is 3,000 direct labor hours, and budgeted fixed overhead costs for the year were $6,750 . During the year, the company produced and sold 8,000 units. Actual fixed overhead costs were $4,800 . Compute the fixed overhead volume
variance. a. $300 (F) b. $300 (U) c. $1,950 (U) d. $2,250 (U)
Segmented pricing is only effective when ________
A) the segments show similar degrees of demand B) the cost of segmenting does not exceed the revenue obtained from the price difference C) the segmented prices do not reflect real differences in customers' perceived value D) the customers of different socio-economic classes are treated according to their rank E) companies make their services and products accessible exclusively to wealthy patrons
On a statement of cash flows prepared using the direct method, cash paid for income taxes would be income tax expense minus
a. an increase in income taxes payable. b. a decrease in income taxes payable. c. beginning income taxes payable. d. ending income taxes payable. e. None of these answers is correct.
KFC is very protective of its "Seven Herbs and Spices" recipe, which, in the view of the company, gives it a significant competitive advantage over other restaurants, and will use any legal resource available to protect its patented formula. Which dimension of brand equity does this example illustrate?
A. brand loyalty B. brand assets C. perceived quality D. brand awareness E. brand association