A Firm with 60 Percent of Sales Going to Variable

question 57

Multiple Choice

A firm with 60 percent of sales going to variable costs, $1.5 million fixed costs, and $500,000 depreciation would show what accounting profit with sales of $3 million? Ignore taxes.(use the values in dollar)

• A)Zero loss
• B)$370,000 loss
• C)$666,667 Loss
• D)$800,000 loss

Evaluate the effectiveness of various organizational structures in response to dynamic market and technological conditions.

Understand the significance of social networking on communication, job search, and group formation within professional contexts.

Learn the importance of adaptability and flexibility in gaining a competitive edge.

Understand the necessity of employee involvement and commitment in successful change initiatives.

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Definitions:

Process Cost System

A method of costing used to assign costs to units of production in industries where the products are indistinguishable from each other and produced in a continuous flow, such as in manufacturing of chemicals or food.

Process Cost System

An accounting system used to track costs associated with processes that produce homogeneous products.

Unit Costs

The cost incurred to produce, store, and sell one unit of a product or service.

Process Cost System

This is an accounting methodology used to allocate costs to units of product in continuous operations, industries where the products are homogeneous.