Chapter 02 - Instructor Homework - Solutions

Chapter 02 - Instructor Homework - Solutions -...

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Chapter 2 Homework     1
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21) 
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The  variable cost per unit of a product should stay the same throughout the relevant range of production.   Answer:  
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TRUE  Diff: 2  Terms: 
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variable cost,  relevant range  Objective: 
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AACSB: 
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Reflective thinking 26) 
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Unit costs  and average costs are really the same thing.   Answer:  
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TRUE  Diff: 2  Terms: 
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average cost, unit  cost  Objective: 
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AACSB: 
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Reflective thinking 30) 
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Merchand ising companies only hold two types of inventories: merchandise inventory, and direct material.   Answer:  
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FALSE  Explanation:  
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Merchandising  companies normally hold  only one type of  inventory: merchandise  inventory. 
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Diff: 2  Terms: 
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merchandising - sector companies  Objective: 
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AACSB: 
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Reflective thinking 31) 
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Manufact uring  sector firms normally hold three types of inventory: direct materials inventory, work - in - process inventory, and finished  goods inventory.   Answer:  
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TRUE  Diff: 2  Terms: 
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merchandising - sector companies  Objective: 
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AACSB: 
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Reflective thinking 103) 
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Kym  Manufact uring  provided  the  following  informati on for last  month: Sales $12,000 Variable costs 4,000 Fixed costs 1,000 Operating income $7,000 If sales double next month, what is the projected operating income?   A) 
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$14,000   B) 
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$15,000   C) 
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$18,000   D) 
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$19,000   Answer:  
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Explanation:  
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This note was uploaded on 11/19/2010 for the course ACCOUNTING Cost taught by Professor B during the Spring '10 term at Oakton.

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Chapter 02 - Instructor Homework - Solutions -...

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