CVP analysis relies on the assumptions that costs are either strictly fixed or strictly variable. Consistent with these assumptions, as volume decreases total
a. fixed costs decrease.
b. variable costs remain constant.
c. costs decrease.
d. costs remain constant.
C
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Each partner in a limited liability partnership (LLP) reports her share of the LLP's profits and losses on her personal tax return.
Answer the following statement true (T) or false (F)
One way that criminal law differs from civil law is that it:
a. provides remedies for violations of private rights. b. must yield a unanimous verdict. c. can have a jury of fewer than 12 persons. d. allows for various claims in one action.
Firms with short operating cycles will experience less of a lag between the creation and delivery of their products and the collection of cash from customers because
a. their cash flow from operations will be much greater than their working capital from operations. b. their cash flow from operations will not differ much from their working capital from operations. c. their cash flow from operations will be much less than their working capital from operations. d. there will be no relation between their cash flow from operations and working capital from operations.
The Byrne Company had its entire inventory destroyed when a fire swept through the company's warehouse on April 30, Year 2. Fortunately, the accounting records were locked in a fireproof safe and were not damaged. The following information for the period up to the date of the fire was taken from the accounting records: Sales$275,000Purchases190,000Beginning inventory22,500Required: Assuming that the gross margin has averaged 35%, what is the estimated value of the inventory destroyed in the fire?
What will be an ideal response?