Total manufacturing costs are equal to
a. Direct Materials + Direct Labor + Selling Costs.
b. Direct Materials + Direct Labor + Overhead.
c. Direct Labor + Overhead + Selling Costs + Administrative Costs.
d. Product Costs + Period Costs.
B
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An improvement made to a machine increased its fair market value and its production capacity by 25 percent without extending the machine's useful life. The cost of the improvement should be
a. expensed. b. debited to Accumulated Depreciation. c. capitalized in the machine account. d. allocated between Accumulated Depreciation and the machine account.
Explain why managers might want to build slack into a budget
The decision to pursue diversification requires management to resolve which industries to enter and whether to enter, and includes such decisions as the following, except
A. structuring a strategic alliance with another company to take advantage of the opportunity. B. acquiring a company already established in the target industry. C. starting a business from the ground up. D. forming a joint venture or partnership with another company. E. selecting the appropriate value chain operating practices to improve the financial outlook.
Orange Electronics Inc. has a profitability ratio of 0.14, an asset turnover ratio of 1.7, a debt to equity ratio of 0.60, and a total asset to equity ratio of 1.60. What is the firm's ROE?
A) 14.28% B) 22.85% C) 38.08% D) 41.76%