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John has been offered a job in New York City at a salary of $50,000 per year. Currently, John lives and works in the Midwest at a salary of $35,000 per year. New York's standard of living is much more costly than in the Midwest. What type of costs would John consider in making a decision? Which would be "sunk" and which would be "opportunity" costs? Which are the differential costs? Are there "other" variables besides costs that John might consider, perhaps?
Which of the following should not be used as the allocation base in a company that appropriately uses a single plant wide rate?
Why is it not possible simply to add together the separately computed earnings per share amounts of individual affiliates in deriving consolidated earnings per share? Explain.
On March 1, Year 1, a firm issues $475,000 bonds at par value plus accrued interest. The stated rate on the bonds was 12% and the bonds pay interest semi-annually on June 30 and December 31. Prepare the entries necessary to record
Suppose that nominal accounts are not closed out at the end of the fiscal period. Explain how this affects account data for the next fiscal period. Use a company or industry to help explain your answer.
Horatio Ltd. uses job order costing to measure and track product costs. Horatio has determined that machine hours drive its manufacturing overhead costs. During the month of June, the following data were available for Product #80:
Davie Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable factory overhead rate is $6.00 per direct labor-hour; the budgeted fixed factory overhead is $92,000 per month, of which $16..
Explain this type of revenue recognition transaction, and what factors should be considered in determining when to recognize revenue in this transaction?
The effect of these events and transactions on 2010 income from continuing operations net of tax would be:
Better Food Company recently acquired an olive oil processing company that has an annual capacity of 2,000,000 liters and that processed and sold 1,400,000 liters last year at a market price of $4 per liter.
Tim is a Senor audit of Two Be Gone, a large publicly held company. The company recently completed an acquisition of its fifth largest competitor. What risks might this present? How will you, the auditor, respond to these risks (i.e. what actions ..
Given the EOQ, what is the average inventory? What is the annual inventory holding cost?
For each of the following items indicate, whether the individual taxpayer must include any amount in gross income.
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