Rients Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for October. Fixed Element per MonthVariable Element per Customer ServedActual Total for OctoberRevenue $4,100$182,900Employee salaries and wages$42,300 $1,300$98,800Travel expenses $700$30,500Other expenses$31,500 $31,900?When the company prepared its planning budget at the beginning of October, it assumed that 39 customers would have been served. However, 44 customers were actually served during October.?The spending variance for "Travel expenses" for October would have been closest to:
A. $3,200 U
B. $300 U
C. $3,200 F
D. $300 F
Answer: D
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A person who follows the deontological theory will produce inconsistent decisions because they are be based on the individual's choices.
Answer the following statement true (T) or false (F)
Working capital turnover ratio indicates:
a. the difference between current assets (excluding inventory) and current liabilities. b. the amount of working capital used in generating sales for the period. c. the bare minimum working capital that a company should have at any time. d. the amount of working capital used as a percentage of the assets owned by the company
The communication stage of accounting is accomplished by
a. storing data. b. reporting to decision makers. c. processing data. d. recording data.
Anchor Calendar Company manufactures wall and desktop calendars for business use. The company expects production of 20,000 units this year. Various costs and items associated with calendar production are described below:
Required: Assume that management is interested in determining the average cost per calendar. For each item in the table, place a check mark or X in every column that applies. When labeling costs as fixed or variable, select your response on the basis of whether the total cost of that item will change when changes occur in volume of calendars produced.
What will be an ideal response?