Harambe Zoo Decides to Run a Promotion Offering Commemorative Gorilla

question 1

Multiple Choice

Harambe Zoo decides to run a promotion offering commemorative gorilla coins with every purchase of a pair of entry tickets. Much to their horror, they soon learn that purchase tax will be imposed on the coins since visitors are deemed to have entered a contract of sale of the coins. The Zoo contends that the coins are meant as gifts and are thus exempt from the tax. Will their argument succeed?

• A) Yes, since a reasonable person who visited the zoo would not have intended to be bound by a contract.
• B) No, because the offer of free coins can properly be regarded as a business matter.
• C) No, since the visitors to the zoo were not bona fide purchasers for value of the coins.
• D) None of the options provided are correct.

Identify and explain the different types of variances, including price, quantity, rate, time, and volume variances.

Apply variance analysis in the context of managerial accounting to control costs and improve operational efficiency.

Interpret the significance of favorable and unfavorable variances in standard costing.

Differentiate between fixed and variable overhead costs and their impact on costs control.

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Duties or projects that involve multiple steps, require higher-order thinking, and cannot be easily automated or simplified.

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Influences or drivers that cause change or affect the performance and behavior of individuals or organizations.

Direction

Guidance or supervision provided to perform tasks or to achieve goals and objectives.