The Wester Corporation produces three products with the following costs and selling prices: Product ABCSelling price per unit$21$12$32Variable cost per unit$11$7$18Fixed cost per unit$5$3$9Direct labor hours per unit 0.4 0.1 0.7Machine hours per unit 0.2 0.5 0.2The company has insufficient capacity to fulfill all of the demand for these three products.If direct labor hours are the constraint, then the ranking of the products from the most profitable to the least profitable use of the constrained resource is:
A. C, A, B
B. A, C, B
C. B, A, C
D. A, B, C
Answer: C
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If a company has $152,000 of revenues, declares and pays $55,000 in dividends, and has net income of $89,000, how much were expenses for the year?
a. $ 8,000 b. $ 63,000 c. $144,000 d. Unable to determine the amount due to incomplete information.
When a manufacturing company employs standard costs, all costs affecting the three inventory accounts and the Cost of Goods Sold account are stated in terms of standard or predetermined costs rather than in terms of actual costs incurred
Indicate whether the statement is true or false
Subtracting nonoperating expenses from operating income yields:
a. income tax expense b. profit before income taxes c. net income d. gross profit e. none of the above
While not required, many U.S. employers provide employees with some paid holidays, sick leave, and/or vacation time. These voluntary benefits fall under the category of ________.
A. paid time off B. group health insurance C. employee services D. retirement plans E. Family Medical Leave