Question

In: Accounting

21. Which of the following is a direct cost of a specific department in a retail...

21.       Which of the following is a direct cost of a specific department in a retail store?
            A.        company president’s salary
          B.        rent on the store
            C.        utilities for the store
            D.        cost of the department’s inventory

22. You have tickets to go to Mexico (Cancun specifically) over spring break. Just this week your best friend informs you that s/he is getting married over spring break and would like you to be in the wedding as an attendant. Which of the following is a sunk cost that should not be relevant to your decision as to whether be in the wedding or go on the trip to Mexico?

The cost of the airline tickets to Mexico
The amount of refund you could get on the airline tickets to Mexico
The cost of the clothing you will have to buy/rent to be in the wedding.
The fact that you have never been anywhere for Spring Break and were really looking forward to going to Mexico

23. If there were 60,000 pounds of raw materials on hand on January 1, 120,000 pounds are desired for inventory at January 31, and 360,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?

a. 300,000 pounds

b. 480,000 pounds

c. 240,000 pounds

d. 420,000 pounds

24. In a production budget, total required production units are the budgeted sales units plus

a. beginning finished goods units.

b. desired ending finished goods units.

c. desired ending finished goods units plus beginning finished goods units.

d. desired ending finished goods units minus beginning finished goods units.

25. In most cases, prices are set by the

a. customers.

b. competitive market.

c. largest competitor.

d. selling company.

Expert Solution

21. Which of the following is the direct cost of a specific department in a retail store?
Answer- B) Rent on the store

22. You have tickets to go to Mexico (Cancun specifically) over spring break. Just this week your best friend informs you that s/he is getting married over spring break and would like you to be at the wedding as an attendant. Which of the following is a sunk cost that should not be relevant to your decision as to whether be at the wedding or go on the trip to Mexico?

Answer- C)The cost of the clothing you will have to buy/rent to be in the wedding.

23. If there were 60,000 pounds of raw materials on hand on January 1, 120,000 pounds are desired for inventory at January 31, and 360,000 pounds are required for January production, how many pounds of raw materials should be purchased in January.

Answer- D)420,000 pounds

24. In a production budget, total required production units are the budgeted sales units plus

Answer- A) Beginning finished goods units

25. In most cases, prices are set by the

Answer- D) Selling Company

ekkarill92 answered 1 year ago

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