The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year: Machine Hours Direct Labor Costs Busiest month (June) 14,000 $200,000 Slowest month (December) 6,000 $120,000 What are the direct labor costs per machine hour?
A. $16.00.
B. $14.29.
C. $10.00.
D. $20.00.
Answer: C
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The Leontief paradox provided
a. support for the principle of comparative advantage. b. support for the factor-endowment theory. c. evidence against the factor-endowment theory. d. evidence against the principle of comparative advantage.
Capitalizing an expenditure rather than recording it as a revenue expenditure:
A) impacts the total book value of plant assets reported on the balance sheet and the amount of net income reported during a period. B) impacts the total book value of plant assets on the balance sheet, but has no effect on the amount of net income reported during an accounting period. C) impacts the amount of net income reported during an accounting period, but has no effect on the total book value of plant assets on the balance sheet. D) has no impact on the book value of plant assets on the balance sheet or the amount of income reported on the income statement.
Customer value
A. becomes less important as competition increases. B. is the same thing as low price. C. affects a customer's relationship with a firm before and after a sale. D. is greater if costs exceed benefits. E. None of these answers is correct.
Before you can measure performance, what must you do?
A) evaluate employees B) improve performance C) set performance standards D) analyze market conditions E) experiment with methods