In a manufacturing company, advertising and marketing costs are included in manufacturing overhead
Indicate whether the statement is true or false
FALSE
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The lower of cost or market (LCM) rule violates the historical cost principle
a. True b. False Indicate whether the statement is true or false
An American company makes a credit purchase of goods from a company in London for $1,000. On the date of purchase, the exchange rate was $1.50 per pound. However, on the date of payment, the rate had risen to $1.55 per pound. As a result, the American company would record
A) an exchange gain of $50. B) an exchange loss of $1,550. C) an exchange loss of $50. D) no exchange gain or loss.
Which of the following statements is true regarding a credit memorandum and its relationship to a company's bank reconciliation procedures?
A) It must be added to the balance per the customer's records. B) It is issued to notify a company of bank service charges which need to be recorded on the company's records. C) It is issued when a customer gives the company an NSF check which needs to be recorded on the company's records. D) It must be recorded as a debit to the balance per the company's records.
The predetermined overhead rate based on direct labor cost is the ratio of estimated overhead cost to estimated direct labor cost for the period.
Answer the following statement true (T) or false (F)