Simplification of the accounting system by eliminating accumulation and transfer of costs as products move through production is called ________ accounting
a. backflush
b. process
c. cost
d. product
a
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Residual income is a relative measure of return, good for comparing divisions of different sizes
Indicate whether the statement is true or false
The motivating potential score is calculated as part of using
A. reinforcement theory. B. McClelland's acquired needs theory. C. the job characteristics model. D. goal-setting theory. E. equity theory.
Pareto Corporation owns 40% of Spring Corporation. During Year 3, Spring has net income of $60,000 . What entry should Pareto record related to its investment in Spring during Year 3?
a. Investment in Spring Corp. 24,000 Equity in Earnings of Affiliate 24,000 b. Dividend Receivable 24,000 Dividend Income 24,000 c. Investment Receivable 24,000 Investment Income 24,000 d. Investment in Spring Corp. 24,000 Investment Income 24,000 e. Investment in Spring Corp. 24,000 Cash 24,000
Centric Sail Makers manufactures sails for sailboats
The company has the capacity to produce 36,000 sails per year and is currently producing and selling 30,000 sails per year. The following information relates to current production: Sales price per unit $180 Variable costs per unit: Manufacturing $60 Selling and administrative $20 Total fixed costs: Manufacturing $675,000 Selling and administrative $300,000 If a special pricing order is accepted for 5,500 sails at a sales price of $160 per unit, and fixed costs remain unchanged, what is the change in operating income? (Assume the special pricing order will require variable manufacturing costs and variable selling and administrative costs.) A) Operating income decreases by $880,000. B) Operating income increases by $880,000. C) Operating income decreases by $440,000. D) Operating income increases by $440,000.