The Per-Unit Standards for Direct Materials Are 2 Pounds at $5

question 215

Multiple Choice

The per-unit standards for direct materials are 2 pounds at $5 per pound. Last month 11200 pounds of direct materials that actually cost $53000 were used to produce 6000 units of product. The direct materials quantity variance for last month was

• A) $4000 favorable.
• B) $3000 favorable.
• C) $4000 unfavorable.
• D) $7000 unfavorable.

Identify conditions that must be met for revenue recognition in the presence of a right of return.

Analyze and account for initial franchise fees revenue.

Recognize revenue correctly in bundled sales transactions.

Calculate realized gross profit on installment sales.

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Definitions:

Transnational Company

A transnational company operates on a global scale, owning or controlling production or service facilities in one or more countries other than its home country.

Global Commodity Chain

A global system of manufacturing and distribution channels that a product navigates before being acquired by the end user.

Marketer

A person or company responsible for promoting and selling products or services.

Globalization

Occurs as people become increasingly aware of, and dependent on, one another.