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NEW QUESTION 29
Which of the following professional organizations sets standards for quality and environmental audits?
Answer: D
Explanation:
Explanation/Reference:
NEW QUESTION 30
A major justification for investments in computer-integrated manufacturing (CIM) projects is:
Answer: C
Explanation:
Automating and computerizing production processes requires a substantial investment in fixed assets and an increase in risk because of greater fixed costs. CIM also necessitates an increase in software costs and extensive worker retraining. However, the costs of spoilage, rework, and scrap are reduced along with labor costs. The qualitative advantages of CIM are increased flexibility, shorter manufacturing lead time, quicker development of new products, better product delivery and service, faster response to market changes, and improved competitiveness.
NEW QUESTION 31
An entity has appropriately used the installment method of accounting sit began operations at the beginning of the current year. The following information pertains to its operations for this year:
The amount of gross profit deferred at the end of the current year should be:
Answer: A
Explanation:
The gross profit on installment sales in US $360,000$1.200.000 installment sales $840,000 cost of installment sales). Accordingly, the gross profit percentage is 30%US $360,000 gross profit -$1,200,000 installment sales), and the amount of gross profit deferred at the end of the current year is 1.11: r. $216.000 [($1 .200.000 installment sales - 480,000 collections x 30%]. General and administrative expense have no effect on the computation of realized gross profit or deferred gross profit. They are to be classified as operating expenses on the income statement in the period in which they are incurred.
NEW QUESTION 32
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