Warren hesitated as he read the fast food menu, unsure whether he should supersize the orders of delicious golden French fries
As the office lunch boy, he was responsible for buying enough food to keep his coworkers satiated during the rest of the work day. Supersizing would increase his cost from $0.99 to $1.59 and just might provide his colleagues the nutrition they needed to make it through the second half of his day at the office. Of course, if they finished his hamburger and the usual amount of fries, Warren would simply throw the extra ones away. However, if he failed to supersize the orders, he would have to purchase candy bars during the afternoon and they weren't exactly giving them away in the break room vending machines. Each hungry colleague would likely need two candy bars, which sold for $1.25 each. With a demand that is normally distributed with a mean of 15 and standard deviation of five, what is Warren's optimal supersize decision?
A) 16.3
B) 17.3
C) 18.3
D) 19.3
Answer: D
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The floor to be used in applying the lower-of-cost-or-market method to inventory is determined as the
a. net realizable value. b. net realizable value less normal profit margin. c. replacement cost. d. selling price less costs of completion and disposal.
Which of the following statements is true of revenues?
A) Revenues decrease equity, so a revenue account's normal balance is a credit balance. B) Revenues decrease equity, so a revenue account's normal balance is a debit balance. C) Revenues increase equity, so a revenue account's normal balance is a debit balance. D) Revenues increase equity, so a revenue account's normal balance is a credit balance.