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Surf Beach State College (SBSC) has a business school with 3 products, undergraduate degrees, graduate degrees, and executive education. SBSC has 3 service departments, Computer Support, Career Development, and the Library. The dean would like to measure product line profitability and wants to include an allocation of service department costs in the analysis. How would you recommend the service department costs be allocated?
Speculating with Currency Futures: Suppose that a March futures contract on Mexican Peso was available in January for $.09 per unit. Also suppose that forward contracts were available for same settlement date at a price of $0.092 per peso.
Griggs Company holds $50,000 of 8% bonds as a held-to-maturity security. Which of the following is the correct journal entry to record the receipt of the semiannual interest payment.
Which financial statement requires input from the income statement and statement of retained earnings. Also what information does this financial statement provide
At the time of his death on June 6, 2011 Keith was involved in the following real estate.
Determine whether or not the measurement of net income for a merchandising company conceptually is the same for a service company.
Great Falls Brewery's regular selling price for a case of beer is $15. Variable costs are $8 per case and fixed costs total $2 per case based on production of 250,000 cases.
Bob and Elizabeth, both 55 years old and married, sell their personal residence to Wolfgang in 2011. Wolfgang pays $660,000 and assumes their $90,000 mortgage. To make the sale they pay $20,000 in commissions and $10,000 in legal costs.
When confirming accounts payable, emphasis should be put on what kind of accounts? Which of the following situations indicates a potential material weakness in internal control over acquisition and expenditure?
ABC company pays a sales commission of 5% on each unit sold. If a graph is prepared with the vertical axis representing per-unit cost and the horizontal axis represented units sold how would a line that depicts sales commission be drawn?
A consulting engineering firm is considering two models of SUVs for the company principals. A GM model will have a first cost of $26,000, an operating cost of $2000, and a salvage value of $12,000 after 3 years.
By preparing a four-column bank reconciliation ("proof of cash") at year-end, an auditor will generally not be able to detect:
"Cost allocation is arbitrary, so there is nothing gained by it. We should report only the costs we know are direct." Do you agree? Why?
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