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External link to Question : 131. Repairs and maintenance do not include A. the costs of restoring an : 1230675
Accounting

Question : 131. Repairs and maintenance do not include A. the costs of restoring an : 1230675

    131. Repairs and maintenance do not include  A. the costs of restoring an asset’s service potential after breakdowns B. expenditures that increase the asset’s life C. routine costs such as for cleaning and adjusting D. major tune-ups including labor and parts E. all of the above   132. During Year 3, Thomas Company made the following expenditures relating to plant machinery and equipment:   · Continuing, frequent, and low cost […]

External link to Question : 58.Which organization has standard setting authority over governmentally related not-for-profit : 1255331
Accounting

Question : 58.Which organization has standard setting authority over governmentally related not-for-profit : 1255331

  58.Which organization has standard setting authority over governmentally related not-for-profit organizations, such as hospitals colleges and universities. A)  GASB. B)  FASB. C)  AICPA. D)  SEC. 59.Private not-for-profits must follow all applicable ____ standards in recording transactions. A)  AICPA. B)  FASB. C)  GASB. D)  SEC. 60.Identify the standard setting body for private not-for-profit organizations and the basis of accounting that should be used. A) GASB […]

External link to Question : 61. The Lowery Co. uses the direct write-off method of accounting : 1247228
Accounting

Question : 61. The Lowery Co. uses the direct write-off method of accounting : 1247228

  61. The Lowery Co. uses the direct write-off method of  accounting for uncollectible accounts receivable.  The entry to write off an account that has been determined to be uncollectible would be as follows:   A. debit Uncollectible Accounts Expense; credit Accounts Receivable B. debit Sales Returns and Allowance, credit Accounts Receivable C. debit Uncollectible Accounts Expense; credit Allowance for Doubtful Accounts D. debit Accounts Receivable, credit Uncollectible Accounts Expense […]

External link to Question : 117.A company had a tractor destroyed by fire. The tractor : 1236326
Accounting

Question : 117.A company had a tractor destroyed by fire. The tractor : 1236326

  117.A company had a tractor destroyed by fire. The tractor originally cost $85,000 with accumulated depreciation of $60,000. The proceeds from the insurance company were $20,000. The company should recognize:     A.A loss of $5,000. B.A gain of $5,000. C.A loss of $20,000. D.A gain of $65,000. E.A gain of $20,000. 118.Natural resources are:     A.Consumable assets such standing timber, mineral deposits, and oil […]

External link to Question : 136.All of the following statements related to current liabilities for : 1236364
Accounting

Question : 136.All of the following statements related to current liabilities for : 1236364

  136.All of the following statements related to current liabilities for U.S. GAAP and IFRS are true except:     A.The definitions and characteristics of current liabilities are broadly similar for both U.S. GAAP and IFRS. B.The term provision is typically used under IRFS to refer to what is titled liability under U.S. GAAP. C.Because tax regulatory systems of countries are different, the approach to recording […]

External link to Question : 71. The sales volume variance was: A. $25,600 favorable. B. $25,600 unfavorable. : 1257198
Accounting

Question : 71. The sales volume variance was: A. $25,600 favorable. B. $25,600 unfavorable. : 1257198

    71.  The sales volume variance was:    A. $25,600 favorable.   B. $25,600 unfavorable.   C. $25,000 unfavorable.   D. $25,000 favorable.     72.The Bach Company provides the following standard and actual cost relating to material price and labor usage.  Based on the above information, which statement is correct?    A. Both the material price variance and the labor usage variance are unfavorable.   B. Both the materials price variance and the […]

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Question : Learning Objective 8-5 1) During 2011, Stockton, Inc. reported net income : 1253377

  Learning Objective 8-5   1) During 2011, Stockton, Inc. reported net income of $4,000, declared and paid a cash dividend of $2,000, and issued common stock for $20,000. At December 31, 2011, Stockton reported total shareholders’ equity of $58,000. What was total shareholders’ equity at the beginning of the year, on January 1, 2011? A) $36,000 B) $40,000 C) $58,000 D) $60,000   2) […]

External link to Question : 151. The basic financial statements include all of the following except: A. Balance : 1225116
Accounting

Question : 151. The basic financial statements include all of the following except: A. Balance : 1225116

  151. The basic financial statements include all of the following except:  A. Balance Sheet. B. Income Statement. C. Statement of Owner’s Equity. D. Statement of Cash Flows. E. Trial Balance. 152. The statement of owner’s equity:  A. Reports how equity changes at a point in time. B. Reports how equity changes over a period of time. C. Reports on cash flows for operating, financing, and investing activities over a period of time. D. Reports on […]

External link to Question : 51. TQM focuses on: A. designing processes to meet the needs of external : 1250879
Accounting

Question : 51. TQM focuses on: A. designing processes to meet the needs of external : 1250879

    51. TQM focuses on:  A. designing processes to meet the needs of external customers only. B. reducing variability in the product or service. C. preventing errors rather than correcting errors. D. tying pay to employees’ total output less rejects. TQM refers to a cooperative form of doing business that relies on the talents and capabilities of both labor and management to continually improve quality and productivity.     […]

External link to Question : Learning Objective 3-5 1) Use the following information from Hormel Foods : 1253193
Accounting

Question : Learning Objective 3-5 1) Use the following information from Hormel Foods : 1253193

  Learning Objective 3-5   1) Use the following information from Hormel Foods Corporation’s income statement to calculate the company’s 2012 profit margin on sales ratio.   (in thousands) Fiscal Year Ended   October 26, 2012 October 28, 2011 Net sales $6,754,903 $6,193,032 Net income $285,500 $301,892   A) 23.7% B) 4.2% C) 4.4% D) 5.0%   2) Use the following information from Hot Spots, […]

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July 1, 2023
    

 

24) Ski Valet provides materials that let people teach themselves how to snow ski. It has six different skill-level programs. Each one includes visual and audio learning aids along with a workbook that can be submitted to the company for grading and evaluation purposes, if the person so desires.

 

The accounting system of Ski Valet is very traditional in its reporting functions with the calendar year being the company's fiscal year. It includes an abundance of information that can be used for various reporting purposes.

 

The company has found that any new idea soon runs its course with an effective life of about three years. Therefore, the company is always in the development stage of some new program. Program development requires experts in the area to provide the know-how of the item being developed and a development team that puts together the video, audio, and workbook materials. The actual costs of reproducing the packages are relatively inexpensive when compared to the development costs.

 

Required:

How might product life-cycle budgeting aid the company in improving its overall operations?

Objective 12.8

 

Answer the following questions using the information below:

 

Knowledge Transfer Associates is in the process of evaluating its new client services for the business systems consulting division.

?Server Planning, a new service, incurred $250,000 in development costs.

?The direct costs of providing the service, which is all labor, averages $50 per hour.

?Other costs for this service are estimated at $300,000 per year.

?The current program for server planning is expected to last for two years. At that time, expected new operating systems are likely to make the service non viable.

?Customer service expenses average $250 per client, with each job lasting an average of 40 hours. The current staff expects to bill 15,000 hours for each of the two years the program is in effect. Billing averages $90 per hour.

 

1) What is the estimated life-cycle operating income for both years combined?

A) $206,250

B) $162,500

C) $(43,750)

D) $(87,500)

2) Price discrimination is the practice of:

A) setting different prices for different products

B) charging different prices for quantity amounts

C) using variable costing for some products and full costing for other products when setting prices

D) charging different prices to different customers or clients for the same products or services

 

3) Iowa Utility Company charges its high-usage commercial customers a lower rate per kilowatt-hour than other customers. This is an example of:

A) customer-preference pricing

B) high-load pricing

C) peak-load pricing

D) price discrimination

 

4) When demand for a product is inelastic and prices are increased, usually demand will:

A) increase, and operating profits will increase

B) remain the same, and operating profits will increase

C) decrease, and operating profits will decrease

D) remain the same, and operating profits will decrease

 

5) When demand for a product is very elastic and prices are increased, demand will:

A) remain the same, and operating profits will increase

B) remain the same, and operating profits may either increase or decrease

C) decrease, and operating profits will decrease

D) decrease, and operating profits may either increase or decrease

6) Costs are a major factor:

A) when demand is price-inelastic

B) when demand is price-elastic

C) when the opportunity for price discrimination exists

D) for peak-load pricing

 

Answer the following questions using the information below:

 

Cox Lighting manufactures table lamps and is considering raising the price by $20 a unit for the coming year. With a $20 price increase, demand is expected to fall by 2,000 units.

 

CurrentlyProjected

Demand20,000 units18,000 units

Selling price$150$170

Variable costs per unit$100$100

 

7) Would you recommend the $20 price increase?

A) No, because demand decreased.

B) No, because the selling price increases.

C) Yes, because contribution margin per unit increases.

D) Yes, because operating income increases.

 

8) The demand for this product is:

A) greatly inelastic

B) slightly inelastic

C) elastic

D) indeterminable

Answer the following questions using the information below:

 

Ernie Shavers, Inc. manufactures electric shavers and is considering decreasing the price by $3 a unit for the coming year. With a $3 price decrease, the unit demand is expected to increase by 25%, and a high volume materials discount is expected to decrease the variable costs per unit by $1 per unit.

 

CurrentlyProjected

Demand10,000 units12,500 units

Selling price$51$48

Variable costs per unit$45$44

 

 

 

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July 1, 2023
    

 

24) Ski Valet provides materials that let people teach themselves how to snow ski. It has six different skill-level programs. Each one includes visual and audio learning aids along with a workbook that can be submitted to the company for grading and evaluation purposes, if the person so desires.

 

The accounting system of Ski Valet is very traditional in its reporting functions with the calendar year being the company's fiscal year. It includes an abundance of information that can be used for various reporting purposes.

 

The company has found that any new idea soon runs its course with an effective life of about three years. Therefore, the company is always in the development stage of some new program. Program development requires experts in the area to provide the know-how of the item being developed and a development team that puts together the video, audio, and workbook materials. The actual costs of reproducing the packages are relatively inexpensive when compared to the development costs.

 

Required:

How might product life-cycle budgeting aid the company in improving its overall operations?

Objective 12.8

 

Answer the following questions using the information below:

 

Knowledge Transfer Associates is in the process of evaluating its new client services for the business systems consulting division.

?Server Planning, a new service, incurred $250,000 in development costs.

?The direct costs of providing the service, which is all labor, averages $50 per hour.

?Other costs for this service are estimated at $300,000 per year.

?The current program for server planning is expected to last for two years. At that time, expected new operating systems are likely to make the service non viable.

?Customer service expenses average $250 per client, with each job lasting an average of 40 hours. The current staff expects to bill 15,000 hours for each of the two years the program is in effect. Billing averages $90 per hour.

 

1) What is the estimated life-cycle operating income for both years combined?

A) $206,250

B) $162,500

C) $(43,750)

D) $(87,500)

2) Price discrimination is the practice of:

A) setting different prices for different products

B) charging different prices for quantity amounts

C) using variable costing for some products and full costing for other products when setting prices

D) charging different prices to different customers or clients for the same products or services

 

3) Iowa Utility Company charges its high-usage commercial customers a lower rate per kilowatt-hour than other customers. This is an example of:

A) customer-preference pricing

B) high-load pricing

C) peak-load pricing

D) price discrimination

 

4) When demand for a product is inelastic and prices are increased, usually demand will:

A) increase, and operating profits will increase

B) remain the same, and operating profits will increase

C) decrease, and operating profits will decrease

D) remain the same, and operating profits will decrease

 

5) When demand for a product is very elastic and prices are increased, demand will:

A) remain the same, and operating profits will increase

B) remain the same, and operating profits may either increase or decrease

C) decrease, and operating profits will decrease

D) decrease, and operating profits may either increase or decrease

6) Costs are a major factor:

A) when demand is price-inelastic

B) when demand is price-elastic

C) when the opportunity for price discrimination exists

D) for peak-load pricing

 

Answer the following questions using the information below:

 

Cox Lighting manufactures table lamps and is considering raising the price by $20 a unit for the coming year. With a $20 price increase, demand is expected to fall by 2,000 units.

 

CurrentlyProjected

Demand20,000 units18,000 units

Selling price$150$170

Variable costs per unit$100$100

 

7) Would you recommend the $20 price increase?

A) No, because demand decreased.

B) No, because the selling price increases.

C) Yes, because contribution margin per unit increases.

D) Yes, because operating income increases.

 

8) The demand for this product is:

A) greatly inelastic

B) slightly inelastic

C) elastic

D) indeterminable

Answer the following questions using the information below:

 

Ernie Shavers, Inc. manufactures electric shavers and is considering decreasing the price by $3 a unit for the coming year. With a $3 price decrease, the unit demand is expected to increase by 25%, and a high volume materials discount is expected to decrease the variable costs per unit by $1 per unit.

 

CurrentlyProjected

Demand10,000 units12,500 units

Selling price$51$48

Variable costs per unit$45$44

 

 

 

default image
July 1, 2023
    

 

24) Ski Valet provides materials that let people teach themselves how to snow ski. It has six different skill-level programs. Each one includes visual and audio learning aids along with a workbook that can be submitted to the company for grading and evaluation purposes, if the person so desires.

 

The accounting system of Ski Valet is very traditional in its reporting functions with the calendar year being the company's fiscal year. It includes an abundance of information that can be used for various reporting purposes.

 

The company has found that any new idea soon runs its course with an effective life of about three years. Therefore, the company is always in the development stage of some new program. Program development requires experts in the area to provide the know-how of the item being developed and a development team that puts together the video, audio, and workbook materials. The actual costs of reproducing the packages are relatively inexpensive when compared to the development costs.

 

Required:

How might product life-cycle budgeting aid the company in improving its overall operations?

Objective 12.8

 

Answer the following questions using the information below:

 

Knowledge Transfer Associates is in the process of evaluating its new client services for the business systems consulting division.

?Server Planning, a new service, incurred $250,000 in development costs.

?The direct costs of providing the service, which is all labor, averages $50 per hour.

?Other costs for this service are estimated at $300,000 per year.

?The current program for server planning is expected to last for two years. At that time, expected new operating systems are likely to make the service non viable.

?Customer service expenses average $250 per client, with each job lasting an average of 40 hours. The current staff expects to bill 15,000 hours for each of the two years the program is in effect. Billing averages $90 per hour.

 

1) What is the estimated life-cycle operating income for both years combined?

A) $206,250

B) $162,500

C) $(43,750)

D) $(87,500)

2) Price discrimination is the practice of:

A) setting different prices for different products

B) charging different prices for quantity amounts

C) using variable costing for some products and full costing for other products when setting prices

D) charging different prices to different customers or clients for the same products or services

 

3) Iowa Utility Company charges its high-usage commercial customers a lower rate per kilowatt-hour than other customers. This is an example of:

A) customer-preference pricing

B) high-load pricing

C) peak-load pricing

D) price discrimination

 

4) When demand for a product is inelastic and prices are increased, usually demand will:

A) increase, and operating profits will increase

B) remain the same, and operating profits will increase

C) decrease, and operating profits will decrease

D) remain the same, and operating profits will decrease

 

5) When demand for a product is very elastic and prices are increased, demand will:

A) remain the same, and operating profits will increase

B) remain the same, and operating profits may either increase or decrease

C) decrease, and operating profits will decrease

D) decrease, and operating profits may either increase or decrease

6) Costs are a major factor:

A) when demand is price-inelastic

B) when demand is price-elastic

C) when the opportunity for price discrimination exists

D) for peak-load pricing

 

Answer the following questions using the information below:

 

Cox Lighting manufactures table lamps and is considering raising the price by $20 a unit for the coming year. With a $20 price increase, demand is expected to fall by 2,000 units.

 

CurrentlyProjected

Demand20,000 units18,000 units

Selling price$150$170

Variable costs per unit$100$100

 

7) Would you recommend the $20 price increase?

A) No, because demand decreased.

B) No, because the selling price increases.

C) Yes, because contribution margin per unit increases.

D) Yes, because operating income increases.

 

8) The demand for this product is:

A) greatly inelastic

B) slightly inelastic

C) elastic

D) indeterminable

Answer the following questions using the information below:

 

Ernie Shavers, Inc. manufactures electric shavers and is considering decreasing the price by $3 a unit for the coming year. With a $3 price decrease, the unit demand is expected to increase by 25%, and a high volume materials discount is expected to decrease the variable costs per unit by $1 per unit.

 

CurrentlyProjected

Demand10,000 units12,500 units

Selling price$51$48

Variable costs per unit$45$44

 

 

 

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