Which of the following correctly describes the accounting for administrative expenses of a manufacturing company?
A) Administrative expenses are product costs and are expensed as incurred.
B) Administrative expenses are period costs and are expensed as incurred.
C) Administrative expenses are product costs and are expensed when the manufactured product is sold.
D) Administrative expenses are period costs and are expensed when the manufactured product is sold.
B
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One way to indicate a major shift in the flow of the report is to incorporate
A) larger headings. B) page breaks. C) graphics. D) underlined text. E) italics.
An internal control questionnaire indicates that an approved receiving report is required to accompany every check request for payment of merchandise. Which of the following procedures provides the greatest assurance that this control is operating effectively?
A. Select and examine receiving reports and ascertain that the related canceled checks are dated no earlier than the receiving reports. B. Select and examine canceled checks and ascertain that the related receiving reports are dated no earlier than the checks. C. Select and examine receiving reports and ascertain that the related canceled checks are dated no later than the receiving reports. D. Select and examine canceled checks and ascertain that the related receiving reports are dated no later than the checks.
As real-life layout problems are typically large, arriving at an optimal solution to such problems is ______.
A. very expensive B. time-consuming C. nearly impossible D. quickly accomplished using computers
Each year, Aspen and the other sales managers meet with the director of sales to reevaluate the compensation plan for sales representatives
Last year they decided that the current compensation plan was tempting the sales representatives to compete too hard with each other and cross ethical lines. To maintain some healthy competition, provide employees with direct financial security, and encourage the sales representatives to act in the company spirit, a ________ compensation plan would be most appropriate. A) straight commission B) commission with a guaranteed salary C) fixed salary D) bonus with a straight commission E) straight salary