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A Characteristic of variable cost is:
a. Cost per unit changes when the number of units changes.
b. Cost per unit stays the same when the number of units changes
c. Total variable cost equals fixed costs when the number of units changes
d. Total variable costs stays the same when the number of units changes
e. a and d above
Determine whether or not the measurement of net income for a merchandising company conceptually is the same for a service company.
Policies regarding when a difference between actual and planned results should be investigated are generally more restrictive for non controllable items than for controllable items.
Jon Johnson an accountant with local CPA firm, has just completed an inventory count for Mom & Pop's Groceries. Mom and Pop provide audited financial statements to their bank annually, and part of that audit requires an inventory count.
Using Excel show all formulas for following: Firm has current assets of 100 million and current liabilities of 50 million and goes belly-up.
Thrifty Co. reported net income of $465,000 for its fiscal year ended January 31, 2011. At the beginning of that fiscal year, 200,000 shares of common stock were outstanding.
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During the last year, Bush Company had net income under absorption costing which was $5,500 lower than its income under the variable costing.
You are preparing taxes for Tim, a business investor, and must calculate his adjusted gross income. Tim invested $10,000 in a business (only slightly less than the other investors) but is claiming a loss of $24,000.
What are ways for valuing stocks? Do you believe these valuation techniques could actually lead the average investor to make a profit buying and selling stock? Why or Why not?
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