In a sell or process further decision, consider the following costs:I.A variable production cost incurred prior to split-off.II.A variable production cost incurred after split-off.III.An avoidable fixed production cost incurred after split-off.Which of the above costs is (are) not relevant in a decision regarding whether the product should be processed further?
A. Only I and III
B. Only I and II
C. Only I
D. Only III
Answer: C
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Paid-in capital may originate from real estate donated to the corporation
Indicate whether the statement is true or false
Firms that focus on cost leadership tend to find the lowest-cost location might
A) locate far from their customers. B) locate in a higher cost area to provide faster response. C) have many facilities to take advantage of economies of scale. D) increase inventory levels to reduce stockouts.
The Simkins Corporation uses a job-order costing system. The following activities took place during the month of May:a.Raw materials purchased$40,000b.Raw materials (all direct) used in production$35,000c.Salaries and wages costs:??Direct labor cost$60,000?Indirect labor cost$30,000?Sales salaries$25,000d.Factory utility costs$15,000e.Depreciation on factory equipment$50,000f.Advertising expense$80,000g.Manufacturing overhead is applied at the predetermined rate of 150% of direct labor cost.?h.Cost of Goods Manufactured for the month$180,000i.Cost of Goods Sold for the month$150,000Required:Prepare journal entries to record the information given above. Key your entries by the letters a through i.
What will be an ideal response?
Assume that the current corporate bond yield curve is upward sloping. Under this condition, then we could be sure that
A. The economy is not in a recession. B. Long-term bonds are a better buy than short-term bonds. C. Maturity risk premiums could help to explain the yield curve's upward slope. D. Long-term interest rates are more volatile than short-term rates. E. Inflation is expected to decline in the future.