Wisseman Corporation Is a Shipping Container Refurbishment Company That Measures

question 352

Multiple Choice

Wisseman Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. When the company prepared its planning budget at the beginning of September, it assumed that 28 containers would have been refurbished. However, 26 containers were actually refurbished during September.The activity variance for total expenses for September would have been closest to:

• A) $400 F
• B) $400 U
• C) $3,000 U
• D) $3,000 F

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Definitions:

Private Placements

Direct sale of securities to a limited number of sophisticated investors, bypassing the public offering process.

Debt SEOs

Debt SEOs, or Seasoned Equity Offerings, refer to the issuance of new shares by a company that has previously gone public, which is incorrect as this term combines concepts improperly. SEOs are equity based and do not pertain directly to debt. NO.

Notes Payable

Written promises to pay a specific sum of money on a certain date, usually including interest.

Short Form Prospectus Distribution

A simplified process for companies to distribute securities, utilizing a shorter prospectus that provides essential information without excessive detail.