A Manufacturer Contemplates a Change in Technology That Would Reduce

question 70

Multiple Choice

A manufacturer contemplates a change in technology that would reduce fixed costs from $800,000 to $600,000, and reduce depreciation expense from $125,000 to $100,000.However, the ratio of variable costs to sales will increase from 68 percent to 80 percent.What will happen to break-even level of revenues?

• A)a reduction to the level of $875,000
• B)a reduction to the level of $2,890,625
• C)an increase to the level of $3,500,000
• D)an increase to the level of $3,625,000

Understand the flow of costs in a job order cost system, including the roles of various inventory accounts.

Identify the documents used in job order costing systems for gathering and assigning costs to jobs.

Comprehend the role and calculation methods of predetermined overhead rates in costing.

Recognize the implications of overapplied or underapplied overhead on financial statements.

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Definitions:

Egyptian Process

An ancient method of embalming, involving the removal of internal organs, treatment of the body with preservatives, and wrapping in linen, to prepare the deceased for the afterlife.

Modern Methods

Contemporary techniques or approaches in various fields such as science, technology, or management.

Ceremonial Weeping

A ritual practice of expressing grief and mourning, often in a structured or ritualized context, such as funerals or commemorative events.

Radcliffe-Brown

An influential British social anthropologist known for his development of structural functionalism and contributions to the study of social structures.