Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device.The cost of the raw materials that will be used in manufacturing the computer board is:
A. a sunk cost
B. a period cost
C. a variable cost
D. a fixed cost
Answer: C
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The accounting cycle requires three trial balances be prepared. In what order are they prepared?
A) Post-closing, unadjusted, and adjusted B) Unadjusted, post-closing, and adjusted C) Unadjusted, adjusted, and post-closing D) Post-closing, adjusted, and unadjusted
Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: Cost PercentCompleteMaterials costs$10,600 65% Conversion costs$12,800 30% A total of 8,500 units were started and 7,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: CostMaterials costs$142,100 Conversion costs$359,500 The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. The cost per equivalent unit for conversion costs for the first
department for the month is closest to: A. $40.03 B. $48.47 C. $44.58 D. $46.16
Ryan Motors' chief technical officer thinks that Chile would not be a good place to sell cars because its average per-capita income is not as high as those of some other emerging markets. Which of the following assumptions does his argument rely on?
A) Chile has an unequal distribution of wealth. B) The middle class in Chile is not as well educated as that of the United States. C) Chile's trade policies discourage the country from importing products. D) The distribution of income in Chile is similar to that in other emerging markets. E) Chile has a relatively high rate of taxation.
Zeta Stores places orders for 60% of the sales forecast in the next month and for 40% of the sales forecast for the following month. It pays for these goods with a 2-month delay. If sales for August are forecast at $10 million and sales for September and October are forecast at $12 million, what will be the forecast cash outflow in September?
A. $4.8 million. B. $15.6 million. C. $10.8 million. D. $9.6 million.