Common allocation bases are
A. direct labor dollars, direct labor hours, and direct material dollars
B. direct labor dollars, direct labor hours, and machine hours
C. direct labor dollars, direct labor hours, and machine dollars
D. machine dollars, direct labor dollars, and direct labor hours
Answer: B. direct labor dollars, direct labor hours, and machine hours
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The smoothing of pension expense is:
A. not allowed by GAAP if the sole purpose is to prevent earnings volatility. B. illegal and prohibited by SEC. C. allowed through amortization and deferral to prevent volatility in earnings. D. unethical and not allowed by GAAP.
Which term describes both the growth in information that inundates businesses each day and the complex tools used to analyze the data and derive meaningful insights?
A. predictive modeling B. information overload C. big data D. data support system E. marketing information system
Lake Country Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances
Lake Country has four public relations specialists plus an office staff. At the beginning of the year, Lake Country estimated the total cost of salaries and benefits for the public relations specialists at $672,000 and a total of 7,000 billable hours for the year. The office and administrative costs were estimated at $406,000. The allocation base for office and administrative costs is billable hours. In June, Lake Country signed a contract for a Russian ballet performance. It negotiated a price of $6,500 for its services. When the job was complete, Lake Country's records showed that it had logged 38.0 billable hours. What was the amount of gross profit that Lake Country made on the job? A) $6,500 B) $3,648 C) $648 D) $2,204
In the Matter of Kmart Corp, where some creditors objected to the bankruptcy judge decision that "critical vendors" were to be paid first so that the store might stay in business, the appeals court held that the decision of the bankruptcy judge was:
a. the record showed the prospect or benefit to the other creditors, which is necessary to allow the preferential payment of one class of creditors and so the critical-vendors order could stand b. the creditors who objected were unreliable and so should not be paid c. the record did not show the prospect or benefit to the other creditors, which would be necessary to allow the preferential payment of one class of creditors but the critical-vendors order could stand anyway d. the record showed the prospect or benefit to the other creditors, which is necessary to allow the preferential payment of one class of creditors, but the critical-vendors order could not stand due to the special circumstances of the case e. none of the other choices are correct