If a Vendor Has Correctly Used Marginal Analysis to Select

question 55

Multiple Choice

If a vendor has correctly used marginal analysis to select its stock levels for the day (as in the newsperson problem in the text) , and if the profit resulting from the last unit being sold (C_u) is $120 and the loss resulting from that unit if it is not sold (C_o.) is $360, which of the following is the probability of the last unit being sold?

• A) Greater than 0.90
• B) Greater than 0.85
• C) Greater than 0.75
• D) Greater than 0.25
• E) None of these choices are correct

Identify and classify costs as direct materials, direct labor, or manufacturing overhead.

Understand the concept of cost of goods available for sale and how it's computed for a manufacturing company.

Recognize similarities and differences between financial and managerial accounting.

Identify examples of period costs versus product costs in a manufacturing setting.