1. According to the just-in-time philosophyA) maintaining inventories wastes resources and frequently covers up poor work or other problems.B) push-through manufacturing flows are the most efficient.C) inventories of finished goods should always be available to meet customer demand.D) long production runs and large production lot sizes take advantage of economies of scale.2. Back flush costing aims at reducing waste in theA) accounting system.B) cost of goods sold.C) storage of raw materials.D) production process.3. For work done during August Printing Press Company incurred direct materials costs of $120000 and conversion costs of $260000. The company employs a just-in-time operating philosophy and back flush costing. At the end of August it was determined that the Work in Process Inventory account had been assigned $1080 of costs and the ending balance of the Finished Goods Inventory account was $1220. There were no beginning inventory balances. What was the ending balance of the Cost of Goods Sold account for August?A) $377700B) $378780C) $378920D) $3800004. The typical relationship between variable costs and volume may be described best as follows:A) Costs increase in an erratic unpredictable fashion with changes in volume.B) Costs stay fairly constant with changes in volume.C) Costs increase with changes in volume up to a certain point and then remain constant.D) Costs increase in direct proportion to increases in volume.

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