An error was made in the computation of the stage of completion of the current year's ending work in process inventory. The error resulted in assigning a lower stage of completion to each component of the inventory than actually was the case. What is the resultant effect of this error upon: (1) The computation of equivalent units in total? (2) The computation of costs per equivalent unit? (3)
Costs assigned to cost of goods completed for the period? (1) (2) (3)
a. Understate Overstate Overstate
b. Understate Understate Overstate
c. Overstate Understate Understate
d. Overstate Overstate Understate
a
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The following are possible product positioning strategies, except:
A) attributes B) competitors C) use or application D) by-products
Indicate whether each of the following statements is true or false.The accuracy of sales forecasts is critical to the effectiveness of a business' overall budgeting process.Sales estimates to be used in the budgeting process are usually prepared by the accounting department.Sales forecasts often are prepared using sophisticated computer programs and statistical techniques.A company's senior vice president for sales would be held responsible for the sales budget.Accompanying the sales budget is a schedule of cash payments for inventory, which is used in preparing the cash budget.
What will be an ideal response?
On February 15, Jewel Company buys 7,000 shares of Marcelo Corp. at $28.53 per share. The purchase is classified as a stock investment with insignificant influence. This is the company's first and only stock investment. On March 15, Marcelo Corp. declares a dividend of $1.15 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 30 and ultimately sells half of the Marcelo Corp. stock on November 17 of the current year for $29.30 per share. The fair value of the remaining shares is $29.50 per share at year-end. The amount that Jewel Company should report in the current-year income statement from its investment in Marcelo Corp. is:
A. Unrealized Loss-Income; $3,395. B. Unrealized Loss-Equity; $3,395. C. Unrealized Gain-Income; $10,295. D. Realized Gain-Income; $3,395. E. Unrealized Gain-Income; $3,395.
Driving down the street you stupidly run a red light and hit a car legally going through a green light. You knock that car into a parked car, which knocks a loaded gun out of the parked car that falls on the street and fires a bullet that hits a person walking on the sidewalk. That person sues you in tort for damages. They will probably:
a. win because you were negligent and caused their injury b. win because strict liability would apply to your actions c. win because carrying a loaded gun is dangerous d. lose because there is no proximate cause e. lose because traffic violations may not be the basis for tort actions