Ms. Teague incurred a $35,000 expense. If her marginal tax rate is 20%, which of the following statements is true?
A. If the expense is nondeductible, Ms. Teague's after-tax cost is zero.
B. If only $17,500 of the expense is deductible, Ms. Teague's after-tax cost is $14,000.
C. If the expense is deductible, Ms. Teague's after-tax cost is $28,000.
D. If the expense is nondeductible, Ms. Teague's after-tax cost is zero and, if the expense is deductible, Ms. Teague's after-tax cost is $28,000.
Answer: C
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Olmo, Inc., manufactures and sells two products: Product K0 and Product H9. The annual production and sales of Product of K0 is 700 units and of Product H9 is 700 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:Activity Cost PoolsActivity MeasuresEstimated Overhead CostExpected Activity???Product K0Product H9TotalLabor-relatedDLHs$549,108 5,6007,00012,600Production ordersorders 52,119 500400900Order sizeMHs 834,716 4,2004,4008,600 $1,435,943 The overhead applied to each unit of Product K0 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $582.36 per unit B. $1,025.67 per unit C. $911.68 per unit D. $972.36 per unit
Explain with an example how attitude specificity affects attitude-behavior correspondence.
What will be an ideal response?
If the cash budget showed a cash shortage, the company most likely would
a. arrange to take out a short-term loan. b. cut salaries of employees. c. sign up for fewer orders so that it could control costs. d. lay off employees for that period.
The process that determines an allowable product cost while setting market price and allowing for an acceptable profit margin is known as
a. target costing. b. product life cycle costing. c. activity-based costing. d. responsibility costing.