Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?The group of users of accounting information charged with achieving the goals of the business is itsWhich of the following financial statements is concerned with the company at a pointin time?An income statementThe most important information needed to determine if companies can pay theircurrent obligations is theA liquidity ratio measures theThe convention of consistency refers to consistent use of accounting principlesHorizontal analysis is also known asHorizontal analysis is a technique for evaluating a series of financial statement dataover a period of timeVertical analysis is a technique that expresses each item in a financial statementProcess costing is used whenAn important feature of a job order cost system is that each jobIn a process cost system product costs are summarized:An activity that has a direct cause-effect relationship with the resources consumed is a(n)Activity-based costingA cost which remains constant per unit at various levels of activity is aThe break-even point is whereFixed costs are $600000 and the contribution margin per unit is $150. What is the break-even pointWhen a company assigns the costs of direct materials direct labor and both variableand fixed manufacturing overhead to products that company is usingIf a division manager s compensation is based upon the division s net income themanager may decide to meet the net income targets by increasing production when usingAn unrealistic budget is more likely to result when itA major element in budgetary control isThe purpose of the sales budget report is toThe accumulation of accounting data on the basis of the individual manager who has the authority to make day-to-day decisions about activities in an area is calledVariance reports areInternal reports that review the actual impact of decisions are prepared byThe process of evaluating financial data that change under alternative courses of action is calledSeasons Manufacturing manufactures a product with a unit variable cost of $100 anda unit sales price of $176. Fixed manufacturing costs were $480000 when 10000 units were produced and sold. The company has a one-time opportunity to sell an additional 1000 units at $140 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units acceptance of the special order would affect net income as follows:Carter Inc. can make 100 units of a necessary component part with the following costs:Direct Materials $120000Direct Labor 20000VariableOverhead 60000Fixed Overhead 40000If Carter can purchase the component externally for $220000 and only $10000 of the fixed costs can be avoided what is the correct make-or-buy decision?A company has a process that results in 15000 pounds of Product A that can be sold for $16 per pound. An alternative would be to process Product A further at a cost of $200000 and then sell it for $28 per pound. Should management sell Product A now or should Product A be processed further and then sold? What is the effect of the action?

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