Define period cost. Give three examples of period costs of a merchandising company.
What will be an ideal response?
Period cost is an operating cost that is expensed in the accounting period in which it is incurred.
Examples include sales staff salaries, advertising, store utilities, office rent, office equipment depreciation,
property taxes and insurance for the office, and delivery expenses.
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The pricing method that establishes selling prices based on a specified rate of return on the assets employed in the operation is
A) target cost pricing. B) return on assets pricing. C) time and materials pricing. D) gross margin pricing.
A(n) ________ is the present transfer of an existing right
A) garnishment B) assignment C) attachment D) consideration
Discuss key issues to be considered when implementing aggregate planning
What will be an ideal response?
Johnson Construction Materials Company has a sales office that sells concrete culvert pipes to property developers
The sales office is a revenue center and prepares a monthly responsibility report. The following information is provided. Revenue Center Responsibility Report Product Type Actual Sales Revenue Flexible Budget Variance U/F Flexible Budget Sales Volume Variance U/F Static Budget 40 inch $31,700 $30,000 $40,800 36 inch long 40,200 42,200 33,000 36 inch short 36,000 33,100 31,100 32 inch 19,100 20,900 28,000 What is the flexible budget variance for the 40-inch pipe? A) $1,700 U B) $10,800 F C) $10,800 U D) $1,700 F