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NEW QUESTION 25
A company expects sales of 225 000 units in April, 210 000 in May and 190 000 in June. The company maintains an ending Inventory each month of 25% of the next month’s sales.
How many units should the company plan to produce in May?
- A. 205,000 units.
- B. 210,000 units
- C. 221,250 units
- D. 215.000 units
Answer: A
NEW QUESTION 26
After a recent earthquake in a nearby city the board of directors of a company has requested a review of the company s disaster recovery plan Which of the following would be classified as a weakness in the company’s disaster recovery plan?
- A. Management has decided not to maintain a hot site because it was determined that the costs outweigh the benefits.
- B. A cold site with backup data and documents is maintained on the basement level of the company s headquarters.
- C. Members of the company’s disaster recovery team maintain current copies of the disaster recovery plan m their homes.
- D. The details of the disaster recovery plan stipulate that internal audit should review the plan every other year rather than annually.
Answer: B
NEW QUESTION 27
A company has the following accounts included in its trial balance as of December 31
What amount of equity will be reported on me company’s balance sheet as of December 31?
- A. $599,000.
- B. $626,500
- C. $92,500.
- D. $657,500
Answer: C
NEW QUESTION 28
A timber company is evaluating its products to determine whether to continue to further process scrap wood into wood chips, or to just sell the scrap wood to another company. Which of the following statements best describes what the company should consider regarding the potential by-product?
- A. The company should consider all joint costs throughout the process before it decides if it should process further.
- B. The company should consider the incremental operating income beyond the split-off point In Its decision.
- C. The company should consider an of the manufacturing costs for Doth products beyond the split-off point.
- D. The company should consider all of the separable costs throughout the process as it is incremental.
Answer: B
NEW QUESTION 29
A company uses the full cost method to determine transfer prices between business units The related data are shown below
Based on these data, what is the transfer price?
- A. $25.00
- B. $50.00
- C. $22 50
- D. $37.50.
Answer: A
NEW QUESTION 30
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