Which of the following factors would suggest a switch to activity-based costing?
a. Product lines similar in volume and manufacturing complexity.
b. Overhead costs constitute a significant portion of total costs.
c. The manufacturing process has been stable.
d. Production managers use data provided by the existing system.
Answer: b. Overhead costs constitute a significant portion of total costs.
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In preparing a typical bank reconciliation, how would outstanding checks be handled?
a. Added to "balance per bank." b. Subtracted from "balance per bank." c. As an item that requires a general ledger adjustment. d. They would be ignored.
Sy wasn't getting the business he thought he should. He started asking the few customers who came in how they had found him. Most of them had just stumbled onto him and stated that they had had no idea that he was even in this mall. Sy have had better luck had he studied the ____________ clause in the contract.
a. Signage b. Hidden charges c. Rent default d. Bail out clause