Operating income is determined by deducting all fixed costs related to production, selling, and administration from contribution margin
Indicate whether the statement is true or false
T
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Herbert and Evita are planning to open a quick copy center near the local college. They will make both cash and credit sales. They will hire college students to make copies and to operate the cash register. Either Herbert or Evita will act as manager
during most hours that the business will be open. One student will be designated as assistant manager when they cannot be present. Describe procedures that Herbert and Evita might use to provide adequate internal control over cash and credit sales and bank deposits.
The Norran Company needs 15,000 units of a certain part to use in its production cycle. If Norran buys the part from Waterloo Company instead of making it, Norran could not use the released facilities in another activity; thus, all of the fixed overhead applied will continue regardless of what decision is made. Accounting records provide the following data: Cost to Norran to make the part: Direct
materials, $3 Direct labor, $12 Variable overhead, $13 Fixed overhead applied, $8 Cost to buy the part from the Waterloo Company, $27 What should Norran's decision be, and what is the total cost savings that would result? a. Buy, $90,000 b. Buy, $15,000 c. Make, $90,000 d. Make, $15,000
Interest on a six-month, 7 percent, $2,000 note is calculated by multiplying $2,000 ´ 7/100 ´ 6/12
Indicate whether the statement is true or false
When you are assigned a task that does not appeal to you, it is ok to decline the task in favor of more appealing assignments.
Answer the following statement true (T) or false (F)