Predetermined overhead rates are calculated before the start of the accounting period, and are therefore based on estimates.
Answer the following statement true (T) or false (F)
True
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Plankton Inc. determines that it needs to train 200 employees on using a new software application. Jason, the training administrator, is investigating options to find the one that will meet the company's needs within the budget available. He determines that no one at Plankton knows enough about the software to provide the training. Which plan would be most likely to achieve training objectives at the lowest cost?
A. hiring external consultants to create training specially tailored to the company B. having Jason deliver the training, based on the content in the user manual C. passing out user manuals and hoping employees can learn enough on their own D. delaying the training program until the company has more money in the budget E. having employees participate in a general outside training course for the software
If the total materials variance (actual cost of materials used compared with the standard cost of the standard amount of materials required) for a given operation is favorable, why must this variance be further evaluated as to price and usage?
a. There is no need to further evaluate the total materials variance if it is favorable. b. Generally accepted accounting principles require that all variances be analyzed in three stages. c. All variances must appear in the annual report to equity owners for proper disclosure. d. It is done so that management can evaluate the efficiency of the purchasing and production functions.
This question is composed of two parts; be sure to answer both. First, compare and contrast open and closed systems. Explain why almost all businesses today have an open system. Next, suppose you manage a business in which you hire young musicians to give lessons to school children. In what ways will you need your business to be open?
What will be an ideal response?
The General Agreement on Tariffs and Trade (GATT) ______.
a. is a treaty governing interstate commerce within different countries b. is designed to promote trade between different states within a country c. levies a flat rate or tariff on trade between member countries d. was established in 1947