11) Absorption-costing income statements cannot differentiate between variable and fixed costs. 11) ______ 12) The period-to-period change in operating income under variable costing is driven by unit level of sales, if the contribution margin is constant. 12) ______ 13) Variable costing will generally report less operating income than absorption costing when the inventory level decreases. 13) ______ 14) Absorption costing defers the fixed manufacturing costs in ending inventory to a future period, but variable costing expenses these costs in the current period. 14) ______ 15) Changes in inventory levels do not affect income amounts between variable and absorption costing […]

TRUE/FALSE.  Write 'T' if the statement is true and 'F' if the statement is false. 1)  A variance is the difference between the actual result and a budgeted amount. 1)  _______  2)  Variances and flexible budgets help managers gain insights into why actual results differ from planned performance. 2)  _______  3)  A static budget is a budget that can be changed or altered after it is developed. 3)  _______  4)  The static-budget variance can be subdivided into the flexible-budget variance and the sales-volume variance. 4)  _______  5)  A flexible budget is a budget that is developed using budgeted revenue or […]

  Fill in the Blank Questions  16. Employees of firms engaged in interstate commerce must receive an overtime rate of at least 1.5 times the regular hourly rate of pay for time worked in excess of ____________________ hours per week. ________________________________________   17. FICA tax is commonly referred to as ____________________ tax. ________________________________________   18. One who is hired by an employer and who is under the control and direction of the employer is called a(n) ___________________. ________________________________________   19. An independent ____________________ is paid by the company to carry out a specific task or job but is not under the direct supervision, control, and direction of […]

  21) The Canada Customs and Revenue Agency requires companies to use practical capacity denominator-level concepts. 21) ______ 22) Theoretical capacity is rarely used to calculate the budgeted fixed manufacturing cost per case because it departs significantly from the real capacity available to a company. 22) ______ 23) The downward demand spiral for a company is the continuing reduction in the demand for its products that occurs when prices of competitors' products are not met and higher unit costs result in more reluctance to meet competitors' prices. 23) ______ MULTIPLE CHOICE. Choose the one alternative that best completes the statement […]

  64) What is the “operating income” assuming 250 people attend and option two is chosen? 64) ______ A) $620 B) $4,620 C) $2,900 D) $2,750 E) $7,329 65) How many people must purchase tickets assuming option two is chosen, and Big Sports expects to raise $4,820 for the athletic fund? Assume no one pays more than the cost of his/her ticket. 65) ______ A) 514 people B) 610 people C) 600 people D) 720 people E) 257 people 66) A decision model is used for 66) ______ A) enabling managers to deal with uncertainty using both quantitative and qualitative […]