quiz 8 - ubmitted by Tran, Khoa (KHOTRAN1) on 2/15/2012...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ubmitted by Tran, Khoa (KHOTRAN1) on 2/15/2012 6:26:17 PM Points Awarded 6.00 Points Missed 4.00 Percentage 60.0% 1. What is the effect of net markups on the cost-retail ratio when using the conventional retail method? A) Increases the cost-retail ratio. B) No effect on the cost-retail ratio. C) Depends on the amount of the net markdowns. D) Decreases the cost-retail ratio. Points Earned: 0.0/1.0 Correct Answer(s): D 2. Oslo Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows: In pricing its ending inventory using the lower-of-cost-or-market, what unit values should Oslo use for products #1 and #2, respectively? A) $20.00 and $32.50. B) $23.00 and $32.50. C) $23.00 and $30.00. D) $22.50 and $27.00. Feedback: Points Earned: 1.0/1.0 Correct Answer(s): A
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
3. During the current fiscal year, Jeremiah Corp. signed a long-term noncancellable purchase commitment with its primary supplier. Jeremiah agreed to purchase $2.5 million of raw materials during the next fiscal year under this contract. At the end of the current fiscal year, the raw
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

quiz 8 - ubmitted by Tran, Khoa (KHOTRAN1) on 2/15/2012...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online