Indicate whether each of the following statements is true or false. (Assume a perpetual inventory system.)________ a) Transportation-out cost is a part of selling and administrative costs.________ b) When transportation-out cost is incurred, the balance in the inventory account increases.________ c) When transportation-in cost is incurred, the balance in the inventory account increases.________ d) When the transportation-out cost is incurred, the balance in the cost of goods sold account increases.________ e. Transportation-in cost is a part of selling and administrative costs.
What will be an ideal response?
a) T b) F c) T d) F e) F
a) This is true. Transportation-out is a selling and administrative expense, or period cost.
b) This is false. Transportation-out is a selling and administrative expense that does not affect the inventory account.
c) This is true. Transportation-in increases the merchandise inventory account.
d) This is false. Transportation-out does not affect cost of goods sold. It is a selling and administrative expense.
e) This is false. Transportation-in is a product cost that is added to inventory and included in cost of goods sold.
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Which of the following would be most likely to be classified as a security?
a. Fractional undivided interests in oil, gas or other mineral rights. b. A pension plan in which only the employer makes contributions. c. A prepaid investment in gold coins. d. An investment in a general partnership.
ABC, Inc., is a small clothing manufacturer that produces shirts and pants using two resources: sewing machine hours and cutting machine hours. The production manager can schedule up to 240 hours of sewing machine time and up to 150 hour cutting machine time. Production of one shirt requires 3 hours of sewing time and 1 hour of cutting time. Each pair of pants requires 2 hours of sewing time and 1.5 hours of cutting time. Each shirt yields a profit of $5, and each pair of pants generates a $6 profit. The objective is to maximize profits. Determine sewing time constraint for the LP formulation. Let X1 = Number of shirts to be produced, X2 = Number of pairs of pants to be produced.
a. 3X1 + 2X2 ? 240 b. X1 + 1.5X2 ? 150 c. 3X1 + 2X2 ? 150 d. X1 + 1.5X2 ? 240
Every criminal defendant has a right to a jury trial
Indicate whether the statement is true or false
Payment to an authorized agent is: A) payment to the principal only if the agent remits the payment
B) payment to the principal if the third person informs the principal. C) payment to the principal, provided the agent does not misappropriate the payment. D) payment to the principal.