Suppose You Want to Buy a Tesla Model S, an All-Electric

question 1

Multiple Choice

Suppose you want to buy a Tesla Model S, an all-electric, zero-emission car that has a 265-mile range and can be recharged in three hours. The Tesla Model S Performance model has a list price of $87,500. However, you want several options (Performance Plus Package, red multicoat armor paint, Tech Package, Sound Studio Package, home charging station, performance wheels, and others) that will cost $17,500. An extended warranty will add an additional $5,000. However, if you put $50,000 down now and finance the balance over the next year, you will receive a dealer rebate of $5,000 off the list price. The dealer will give you a $7,000 trade-in allowance for your 2013 Honda Civic DX four-door sedan. In addition, you will have to pay a state sales tax of $10,000, an auto registration fee of $1,000 to the state, and a $1,000 destination charge to ship and prep the car. But because the Tesla Model S is an alternative energy vehicle, you qualify for a $2,500 state rebate and a $7,500 federal tax credit! Finally, your total finance charge is $7,000. Applying the price equation, what is your final price for the Tesla Model S?

• A) $57,000
• B) $68,000
• C) $87,500
• D) $107,000
• E) $151,000

Describe the link between major financial statements: income statement, balance sheet, and statement of owner's equity.

Explain the role of accounting in the measurement, analysis, and reporting of financial performance and position.

Understand the concept and calculation of net income and capital within a stated period.

Understand the major differences between IFRS for SMEs and full IFRS.

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Definitions:

Traditional Costing Method

A cost accounting method that assigns overhead costs to products based on a predetermined overhead rate.

Direct Labor-Hours

A measure representing the total hours worked by employees directly involved in the production of goods or services.

Unit Product Cost

Unit product cost is the total expense incurred to produce, store, and sell one unit of a product.

Overhead Applied

The allocation of overhead costs to specific jobs or production units based on a predetermined rate or method.