Which of the following is NOT a element of internal controls for inventory?
a. Authorization for all purchases.
b. Proper accounting for receipt of inventory.
c. Perpetual inventory system.
d. Rapid introduction of new products without market studies.
d
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Salespeople can establish credibility with their customers by doing all of the following EXCEPT:
A. being enthusiastic about their work. B. being aggressively persuasive. C. using proof statements effectively. D. being continuously empathetic. E. listening to specific customer needs.
Contribution margin is calculated by deducting ________ from sales revenue.
A) total product costs B) total selling and administrative costs C) total fixed costs D) total variable costs
Which of the following is an advantage offered by local newspapers?
A) long life B) high pass-along rate C) high quality images D) timeliness E) increasing readership
CM Company manufactures a component used in the production of one of its main products
The following cost information is available: Direct materials $420 Direct labor (variable) 110 Variable manufacturing overhead 80 Fixed manufacturing overhead 30 A supplier has offered to sell the component to CM for $650 per unit. If CM buys the component from the supplier, the released facilities can be used to manufacture a product that would generate a contribution margin of $10,000 annually. Assuming that CM needs 4,000 components annually and that the fixed manufacturing overhead is unavoidable, what would be the impact on operating income if CM outsources? A) Operating income would decrease by $150,000. B) Operating income would increase by $10,000. C) Operating income would decrease by $10,000. D) Operating income would increase by $160,000.