51.Which of the following is a valid reason for using variable costing?    A. Fixed production cost should be ignored when costing units of inventory since it is not essential to the production process.   B. Absorption costing recognizes fixed costs as expense regardless of volume of production.   C. Absorption costing may motivate managers to overproduce in order to increase profits.   D. Under variable costing managers […]

  41. Jenny constructed a building for use as a residential rental property. The cost of the building was $164,975, and it was placed in service on August 1, 1990. The building has a 27.5-year MACRS life. What is the amount of depreciation on the building for 2014 for tax purposes? a. $2,250 b. $3,000 c. $6,000 d. $6,547 e. None of the above 42. ABC Corp bought a production machine on […]

  Article Summary In an August 2013 speech from the Lincoln Memorial, President Obama was expected to emphasize that increased economic equality is needed to improve racial equality. Economic gaps based on race have endured for 50 years, with the differences in unemployment rates between blacks and whites remaining virtually unchanged and the gap in wealth actually increasing. “If you look at 50 years after […]

  101. Based on the following information, what is earnings per share?  Common shares outstanding at the beginning     of the accounting period 210,000 Common shares outstanding at the end of the     accounting period 230,000 Weighted-average common shares outstanding     during the period 220,000 Preferred stock dividend declared and paid $  70,000 Preferred stock dividend in arrears $  20,000 Net income $500,000     […]

  11) If a buyer in an economic transaction has more information than the seller, the buyer benefits at the expense of the seller.  This phenomenon is due to A) moral hazard. B) adverse selection. C) economically irrational behavior. D) gains from trade. 12) If a state requires all drivers to purchase auto insurance, insurance companies still face the problem of A) correctly pricing their […]

  11) If the price is below the equilibrium price, A) there is a surplus. B) there is a shortage. C) the supply curve will shift rightward. D) the supply curve will shift leftward. E) the demand curve will shift leftward. 12) When there is a shortage of parking spaces at your college, the A) demand for parking spaces is greater than the supply. B) […]

  3.3  Optimization in Differences: Marginal Analysis 1) Which of the following statements is true? A) Optimization in levels is based on ordinal analysis. B) Optimization in differences is based on marginal analysis. C) Optimization in differences is often faster than optimization in levels as it considers all aspects of the feasible alternatives. D) Optimization in levels is often slower to implement than optimization in […]

137.When calculating the value of a bond using present value techniques, which of the following is not relevant?   a. The dollar amount of the discount or premium b. The present value of a single sum table c. The amount of the periodic interest payment d. The face amount of the bonds       138.On January 2, 20×7, Barham Corporation issued ten-year bonds payable […]

  31) The capital budgeting stage in which the project is placed in motion and performance is monitored is called the 31) ______ A) implementation and control stage. B) financing stage. C) selection stage. D) information-acquisition stage. E) none of the above 32) The return that is expected by the organization is known as all of the following EXCEPT 32) ______ A) cost of capital. […]

    111. When grading her top student’s term paper in an English literature course, Dr. Dickinson did not notice several spelling errors. However, she did not miss any spelling errors on her other students’ papers. Missing her top student’s spelling errors might indicate that Dr. Dickinson was utilizing a lot of _____ processing when grading papers.  A. feature detection B. top-down C. parallel distributed D. bottom-up 112. You are looking […]