The Only Variable Input Used in Producing Bicycles in a Small

question 75

Multiple Choice

The only variable input used in producing bicycles in a small factory is labor. Currently four workers are employed; each works 40 hours per week and is paid $10 per hour. If fixed cost is $2,000 per week and total output is 10 bicycles per week, average cost is:

• A) $160.
• B) $260.
• C) $200.
• D) $360.

Evaluate the liability issues of accountants under the 1933 Securities Act regarding misleading registration statements.

List the services that are prohibited for accounting firms to perform for audit clients under the Sarbanes-Oxley Act.

Understand the legal and ethical considerations regarding the confidentiality of client information obtained by accountants.

Identify the requisite elements of fraud within financial transactions and accounting practices.

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Definitions:

Dividends Per Share

The amount of dividend a company pays out to each shareholder for each share they own, indicating the dividend payout per individual share.

Net Income

The net earnings of a company resulting from subtracting all costs and taxes from its overall revenue.

Shares Outstanding

The total number of a company's shares that are owned by shareholders, including both public and private entities, available in the market.

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within one year or the normal operating cycle of the business, whichever is longer.