When the total fixed costs increase, the breakeven point ________
A) increases
B) decreases
C) decreases proportionately
D) remains the same
A
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The financial statements of an organization reflect a set of management assertions about the financial health of the business. All of the following describe types of assertions except
a. that all of the assets and equities on the balance sheet exist b. that all employees are properly trained to carry out their assigned duties c. that all transactions on the income statement actually occurred d. that all allocated amounts such as depreciation are calculated on a systematic and rational basis
Stampout Plastics produces different kinds of products, all in one manufacturing facility. They have identified four activities for their costing system:
Materials management—allocated by number of purchase orders
Chemical processing—allocated on metric tons
Molding—allocated on direct labor hours
Packaging—allocated by number of units produced
The activity rates are as follows:
Engineering design shows that the order will require direct materials that cost $540; direct labor cost will be $90. The order will also require four purchase orders to be placed, use two metric tons of chemical base, and need eight direct labor hours. The size of the order is to produce 3,000 units of product. Calculate the total production of the order.
Inefficient usage of labor implies a(n)
A) unfavorable variable overhead efficiency variance B) favorable variable overhead efficiency variance C) unfavorable variable overhead spending variance D) favorable variable overhead spending variance E) both unfavorable variable overhead efficiency variance and unfavorable variable overhead spending variance
The Parol Evidence Rule. Vision Graphics, Inc, provides printing services to customers such as Milton Bradley Co To perform its services, Vision agreed to buy or lease from E. I. du Pont de Nemours and Co parts of a computer software system. Vision
needed the system to accept files written in "PostScript," a computer language used in the printing industry. Du Pont orally represented to Vision that with three upgrades, its system would be completely "postscriptable." Promises regarding postscriptability were not included in any of the parties' written contracts. Each contract, however, was an integrated contract explicitly stating that the contract contained the entire agreement of the parties. Before the three upgrades were complete, du Pont determined that for financial reasons, it could no longer support its system and told Vision that the software would not be made postscriptable. Vision lost customers and could not attract new accounts, and its reputation in the industry was damaged. Vision filed a suit in a federal district court against du Pont, alleging, among other things, breach of contract on the basis of the oral promises. Du Pont filed a motion for summary judgment, arguing that whether it breached any oral agreement was "immaterial." Will the court agree? Why or why not?