As the level of activity increases, the variable cost per unit of activity

Multiple Choice

• increases.

• decreases.

• may increase or decrease.

• does not change.

Department B had net sales of $440,000, gross profit on sales of $270,000, total direct expenses of $101,000, and total indirect expenses of $62,000. Department B's contribution margin is:

Multiple Choice

• $107,000.

• $169,000.

• $277,000.

• $339,000.

Reversing entries are required by:

Multiple Choice

• the Internal Revenue Service.

• Generally Accepted Accounting Principles.

• the International Accounting Standards Board.

• none of the above.

Costs in excess of established standards are ____________________.

Multiple Choice

• overhead.

• flexible.

• unfavorable.

• favorable.

Department B had net sales of $440,000, gross profit on sales of $270,000, total direct expenses of $101,000, and total indirect expenses of $62,000. Department B's contribution margin is:

Multiple Choice

• $107,000.

• $169,000.

• $277,000.

• $339,000.

Which of the following is NOT considered regarding the purchase of new equipment when looking at the net income under each alternative?

Multiple Choice

• annual sales

• depreciation expense per year on the new equipment

• differential labor costs

• additional fixed costs under an alternative

Benefits of maintaining inventory records on a perpetual basis include all of the following except:

Multiple Choice

• provides improved cost control.

• avoid annual physical counts.

• easier to identify potential shortages.

• improved customer experiences.

A company has total assets of $440,000, current assets of $307,000, total liabilities of $185,000, and current liabilities of $152,000. What amount of working capital is available to meet its obligations?

Multiple Choice

• $122,000

• $155,000

• $255,000

• $288,000