Which of the following statements is true of inflationary periods?
a. averaging reports a higher inventory balance than FIFO
b. averaging reports a higher net income than FIFO
c. LIFO reports a higher inventory balance than FIFO
d. FIFO reports a higher gross profit than LIFO
e. LIFO reports a higher net income than FIFO
Answer: d. FIFO reports a higher gross profit than LIFO
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Davie, Inc used estimated direct labor hours of 250,000 and estimated manufacturing overhead costs of $1,150,000 in establishing its predetermined overhead allocation rate for the year
Actual results showed the following: Actual manufacturing overhead $800,000 Allocated manufacturing overhead $850,000 What was the number of direct labor hours worked during the year? (Round any intermediate calculations to two decimal places, and your final answer to the nearest whole number.) A) 173,913 hours B) 265,625 hours C) 250,000 hours D) 184,783 hours
Cluster analysis requires prior knowledge of the cluster or group membership for each object or case included to develop the classification rule
Indicate whether the statement is true or false