Which of the following assets do not qualify for capitalization of interest costs incurred during construction of the assets?
a. Assets under construction for an enterprise's own use.
b. Assets intended for sale or lease that are produced as discrete projects.
c. Assets financed through the issuance of long-term debt.
d. Assets not currently undergoing the activities necessary to prepare them for their intended use.
Answer: d. Assets not currently undergoing the activities necessary to prepare them for their intended use.
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Quality Stereo Company has provided the following information regarding its activity-based costing system
• Purchasing department costs are allocated based on purchase orders, and the predetermined overhead allocation rate is $79 per purchase order. • Assembly department costs are allocated based on the number of parts used, and the predetermined overhead allocation rate is $2 per part. • Packaging department costs are allocated based on the number of units produced, and the predetermined overhead allocation rate is $2 per unit produced. Each stereo produced has 50 parts, and the direct materials cost per unit is $62. There are no direct labor costs. Quality Stereo has an order for 1,000 stereos, which will require 40 purchase orders in all. What is the total cost for the 1,000 stereos? A) $167,160 B) $104,480 C) $103,160 D) $164,000
Which of the following are the levels of management?
a. technical, interpersonal and conceptual b. technical, interpersonal and line staff c. training, managing, staffing d. controlling, planning, retraining e. none of the above