At the beginning of the year, Barcroft Co. estimated that its total annual fixed overhead costs would amount to $25,000. Further, Barcroft estimated that its volume of production would be 2,000 units of product. Based on these estimates, Barcroft computed a predetermined overhead rate that was used to allocate overhead costs to the products made during the year. As predicted, actual fixed overhead costs did amount to $25,000. However, actual volume of production amounted to 2,200 units of product. Based on this information alone:
A. Products were overcosted during the year.
B. Products were costed accurately during the year.
C. Products were undercosted during the year.
D. The answer cannot be determined from the information provided.
Answer: A
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Government agencies are known for having so many layers and rules that decisions are made slowly and inefficiently. In this case, the __________ resource is a detriment to taxpayers using and paying for the bureaucracy.
A. financial B. organizational C. physical D. technological
Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.
A. The lower the cost of capital used to calculate a project's NPV, the lower the calculated NPV will be. B. If a project's NPV is less than zero, then its IRR must be less than the cost of capital. C. If a project's NPV is greater than zero, then its IRR must be less than zero. D. The NPV of a relatively low-risk project should be found using a relatively high cost of capital. E. A project's NPV is found by compounding the cash inflows at the IRR to find the terminal value (TV), then discounting the TV at the cost of capital.
In CASE 16.1 Federal Trade Commission v. Actavis, Inc (2013), Actavis sought to market a generic version of AndroGel, which was owned by Solvay. The parties entered into a settlement agreement which required Solvay to pay Actavis millions as compensation for "other services.". The FTC sued all parties, alleging violations of the Sherman Act. The case involved a question of whether __________
should be analyzed under the __________ standard. a. reverse payment settlements, rule of reason b. vertical conspiracy, rule of reason c. horizontal conspiracy, rule of reason d. group boycotts, per se
Creative Solutions Corporation (CSC) agrees to sell software to Drew from CSC's Web site. To complete the deal, Drew clicks on a button that, with reference to certain terms, states, "I agree." What is this sort of agreement called? Do the parties have a binding, enforceable contract that includes the terms? Explain.
What will be an ideal response?