Variable costing and absorption costing income statements may differ because of their treatment of fixed selling and administrative costs
Indicate whether the statement is true or false
False
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When searching for unrecorded liabilities at the end of an accounting period, the accountant would search all of the files except
a. the purchase requisition file b. the cash receipts file c. the purchase order file d. the receiving report file
A limitation of a competency-based structure is that it requires cost controls.
Answer the following statement true (T) or false (F)
Franklin Company obtained a $160,000 line of credit from State Bank on January 1, Year 1. The company agreed to accept a variable interest rate that was set at 2% above the bank's prime lending rate. The bank's prime rate of interest and the amounts borrowed or repaid during the first three months of Year 1 are shown in the following table. Assume that Franklin borrows or repays on the first day of each month. Amt Borrowed(Repaid) Prime Rate forthe Month1-Jan$40,000 4.0% 1-Feb (10,000) 4.5% 1-Mar 40,000 5.0% What is the amount of interest expense recognized in March?
A. $292 B. $262 C. $232 D. $408
Applying Six Sigma to service processes is more challenging than for manufacturing processes
Indicate whether the statement is true or false