Which of the following is not true about backflush costing?
a. Different companies may choose different trigger points.
b. Production costs are attached to products as they move through work in process.
c. A single account is used for raw and in-process materials because materials are issued to production when received from the supplier.
d. Direct labor is usually insignificant in a highly automated system, so is not cost effective to account for it separately.
b
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During the past decade, the areas of greatest worldwide growth lay in the emerging markets of _____.?
A. ?China, India, and Brazil B. ?China, India, and Argentina C. ?India, Brazil, and South Africa D. ?China, Brazil, and Argentina E. ?China, South Africa, and Argentina
Hinger Corporation is considering a capital budgeting project that would require investing $120,000 in equipment with an expected life of 4 years and zero salvage value. Annual incremental sales would be $350,000 and annual incremental cash operating expenses would be $250,000. The project would also require an immediate investment in working capital of $10,000 which would be released for use elsewhere at the end of the project. The project would also require a one-time renovation cost of $40,000 in year 3. The company's income tax rate is 30% and its after-tax discount rate is 11%. The company uses straight-line depreciation. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.The total
cash flow net of income taxes in year 2 is: A. $49,000 B. $79,000 C. $100,000 D. $70,000