Depreciation on a personal computer used in the marketing department of a manufacturing company would be classified as:

A. a product cost that is variable with respect to the company's output.
B. a period cost that is variable with respect to the company's output.
C. a product cost that is fixed with respect to the company's output.
D. a period cost that is fixed with respect to the company's output.


Answer: D

Business

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Pegasus Avionics makes aircraft instrumentation. Its basic navigation radio requires $60 in variable costs and $3000 per month in fixed costs. Pegasus sells 10 radios per month. If the company further processes the radio, to enhance its functionality, it will require an additional $27 per unit of variable costs, plus an increase in fixed costs of $270 per month. The current sales price of the radio is $290. The marketing manager is sure that Pegasus can charge a higher sales price for the improved version. At what sales price level would the new, improved radio begin to improve operating earnings? (Round to the nearest whole dollar.)

A) at a sales price higher than $344 B) at a sales price of $290 C) at a sales price lower than $290 D) at a sales price of $377

Business

Psychological influences that determine where a person purchases products on a regular basis are called

A. convenience responses. B. patronage motives. C. shopping motives. D. pattern responses. E. routine decisions.

Business

Suppose it is July 10, and the current spot price of a Microsoft share is $40 . Rank the following put options from the most valuable to the least valuable

a. September 10 Microsoft put option with a strike price of $45/share. b. September 10 Microsoft put option with a strike price of $40/share. c. September 10 Microsoft put option with a strike price of $35/share.

Business

If we use the ?2 goodness-of-fit to test for the differences among 4 proportions, the degrees of freedom is equal to:

a. 3 c. 5 b. 4 d. None of these choices.

Business