Overhead costs are

A) not allocated to the Work in Process Inventory account.
B) not charged directly to the Finished Goods Inventory account.
C) expensed in the period in which they are incurred.
D) not considered product costs.


B

Business

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In accounting, depreciation means the decline in value of an asset

Indicate whether the statement is true or false

Business

The power of what makes a small amount of money, such as a one-time deposit of $2,500, grows into a million dollars?

A) Multiplying B) Compounding C) Augmenting D) Accumulating E) Investing

Business

The Savage Company makes mugs for which the following standards have been developed:

Standard Inputs Expected Standard Price Expected
For Each Unit of Output Per Unit of Input
Direct Materials 5 ounces $2 per ounce
Direct Labor 1.5 hours $8 per hour

Production of 400 mugs was expected in July, but 440 mugs were actually completed. Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce. Direct labor cost for the month was $5,310, and the actual pay per hour was $9.00. What is the direct material quantity variance for July?
A) $200 Favorable
B) $200 Unfavorable
C) $220 Favorable
D) $220 Unfavorable

Business

Why is debt financing said to include a tax shield for the company?

A. Taxes are reduced by the amount of the debt. B. Taxes are reduced by the amount of the interest. C. Taxable income is reduced by the amount of the interest. D. Taxable income is reduced by the amount of the debt.

Business