What are indirect costs, and how are the indirect costs incurred to make products accounted for?
What will be an ideal response?
Answers will vary
Indirect costs are costs that cannot be traced to products and services in a cost-effective manner. These costs are initially recorded in a Manufacturing Overhead account, then they are allocated to the products that the company has produced.
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The purchase of a long-term asset using a long-term note payable is an example of a noncash investing and financing activity, which should be disclosed in a note or separate schedule.
Answer the following statement true (T) or false (F)
Net profit margin is net profit before noncontrolling share of earnings and nonrecurring items to total assets
Indicate whether the statement is true or false
What approach combines the benefits of individual and group creativity?
a. Nominal group technique b. Brainwriting c. Brainstorming d. a and b.
Jerrold Williams buy a car for personal use on credit from Junk Yard Dog Auto Sales. Jerrold gives JYD Auto Sales a promissory note for the value of the car. The note is marked "customer note". JYD assigns the note to Sure Finance
The car is defective and Jerrold refuses to pay Sure Finance. It sues him on the note. Which of the following is TRUE? A) As a promissory note is a negotiable instrument, Jerrold cannot set off the cost of the car repair against a claim on the note. B) Because the promissory note is marked as part of a consumer transaction, Jerrold can set up the cost of repairing the defects against the amount owing on the note. C) Because Sure Finance is a holder in due course, the cost of repair cannot be set up against its claim on the note. D) Because this was a consumer transaction and Jerrold did not receive independent legal advice, Sure Finance cannot sue him on the note. E) Both A and C