Explain the four different kinds of costs to consider when using costs to set price
What will be an ideal response?
a. Development costs – expenses involved in bringing new products to market.
b. Overhead costs – must be ultimately covered by revenues from individual products, but they are not associated with any one product.
c. Direct fixed costs – these costs, such as marketing manager's salary and product-related advertising and promotion, are associated with individual products but do not vary with sales volume.
d. Variable costs – the per-unit costs of making the product or delivering the service. These must be recovered by price.
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The frequency with which a union goes out on strike is a good measure of the bargaining strength of that union.
Answer the following statement true (T) or false (F)
Phoenix Agency leases office space. On January 3, Phoenix incurs $38,400 to improve the leased office space. These improvements are expected to yield benefits for 5 years. Phoenix has 3 years remaining on its lease. Compute the amount of expense that should be recorded the first year related to the improvements.
A. $7680. B. $20,100. C. $12,800. D. $7300. E. $14,980.
On January 1, Jackson, Inc.'s Work-in-Process Inventory account showed a balance of $65,800. During the year, materials requisitioned for use in production amounted to $70,900, of which $67,400 represented direct materials. Factory wages for the period were $209,000 of which $186,600 were for direct labor. Manufacturing overhead is allocated on the basis of 60% of direct labor cost. Actual overhead was $116,340. Jobs costing $353,220 were completed during the year. The December 31 balance in Work-in-Process Inventory is ________.
A) $65,800 B) $319,800 C) $431,760 D) $78,540
The direct approach is an appropriate strategy for ______.
A. good news B. neutral news C. bad news D. both good news and neutral news