Bus 302 l - Study guides, Class notes & Summaries

hat is break-even point in sales? - Answer fixed cost / (price-variable cost) 10,000 / (7.50-2.25)=1905 what is the total contribution margin? - Answer sales revenue-variable expense (7.50*20,000) - (2.25*20,000) =105,000

Because of scarcity, every economic decision involves Answer> a trade-off. Ryan spends an hour studying instead of going for a bike ride. Assume studying and bike riding were Ryan's only options for that hour. The opportunity cost to him of studying is: Answer> the enjoyment and exercise he would have received from bike riding. The gains from trade are: Answer> a result of more efficient resource allocation. Which of the following would not tend to lower the price of VCRs? A...

Comparing actual outcomes with budget outcomes, then following up, is an example of a Answer> Controlling activities Which of the following is typically a starting point for the budget process? Answer> a sales budget Tax accounting is generally most used by: Answer> Internal revenue service (IRS) Management accountant place more emphases on which of the following Answer> future activities Which of the following organization would be most likely to accept a process costing...

In the annual report, where would a financial statement reader find out if the company's financial statements give a fair depiction of its financial position and operating results? Answer> Auditor's report Which accounting assumption assumes that an enterprise will continue in operation long enough to carry out its existing objectives and commitments? Answer> Going Concern Assumption Johnny's Car Repair Shop started the year with total assets of $60,000 and total liabilities...

A company sells pretzels for $1.50/bag. Their February ending inventory was $1,600. Marketing prepares the following forecast: January 15,000 bags February 12,000 bags March 16,000 bags Total 43,000 bags Projected sales for April are 13,000 bags. Try to maintain 10% of the next month's forecasted sales in inventory. What is the projected for March? Answer> 13,000*10%= 1,300 March: 16,000 Feb ending inv: (1,600) =1,300+16,000-1,600 = 15,700 Same info as no 1. What is the sales b...

A test is one-tailed when the alternate hypothesis, H1 or HA, states a direction, such as: - Answer < or > H0 - Answer = 2-tailed Alternative - Answer - Population mean not equal to number - Population proportion not equal to fraction A test is two-tailed when no direction is specified in the alternate hypothesis - Answer "≠" split α

Offer Requirements Answer> 1. intent to contract 2. definiteness of terms 3. communicated *NOT ADS Firm Offer Requirements (Merchant Rule) Answer> 1. be made by an offeror who is merchant 2. be contained in a signed writing 3. give assurances that the offer will be kept open (max 90 days) Unilateral Contract Answer> when only one party makes a promise *rewards program, lost dog Bilateral Contract Answer> both parties make promises and the contract is formed after they ...

f the price elasticity of demand for CSUN sweatshirts is 1.5, then - Answer an increase in price will cause total consumer expenditures on CSUN sweatshirts to fall Economic profit is equal to - Answer total revenue minus the opportunity cost of producing goods and services. Your friend is thinking of opening a video store. She estimates it would cost $500,000 a year to rent the store and buy video stock. She is planning to quit her $50,000 a year job as an accountant to run the store. Her ...

Budget - Answer The budget is a financial plan. The budgeted sales and cost data help managers plan the hotel's target profit (revenues - expenses) Manager should use budget for which? - Answer Control operations Break-even sales in units - Answer The number of units you need to sales in break-even. Break-even Point - Answer The sales level at which operating income is zero.

Which phrase best describes the current role of the managerial accountant? Answer> Managerial accountants facilitate the decision-making process within an organization. An example of qualitative data is: Answer> customer satisfaction Product and service costing information is prepared for Answer> -manufacturing companies with inventory. -merchandising companies. -service providers. -each of the other four answers.. -manufacturing companies without inventory. Manufacturing co...