Exhibit 11.5 The Following Questions Use the Data Below

question 121

Multiple Choice

Exhibit 11.5
The following questions use the data below.
A store wants to predict quarterly sales. The owner has collected 3 years of sales data and wants your help in analyzing the data using the multiplicative seasonal effects model.
-Refer to Exhibit 11.5. What formula should be entered in cell F7 to compute the seasonal factor using the multiplicative seasonal effects model?

• A) =$J$3*D4+(1-$J$3)*(E3+F3)
• B) =$J$4*(D7/E7)+(1-$J$4)*F3
• C) =$J$4*(E7/E6)+(1-$J$4)*E6
• D) =$J$3*G3+(1-$J$3)*(D3+G3)

Apply costing concepts to specific company scenarios.

Analyze and prepare income statements using both absorption and variable costing.

Understand the impact of production level changes on income under both costing methods.

Match costing concepts with their descriptions and applications.

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Definitions:

Salaries And Wages Payable

A liability account that represents the amounts owed to employees for work performed but not yet paid.

Medical Insurance Deductions

Amounts subtracted from an employee's gross pay for health insurance premiums, often part of an employer-sponsored health plan.

Federal Unemployment Taxes

Taxes imposed on employers to fund unemployment benefits, administered at the federal level.

Payroll Tax Expense

Taxes that an employer is responsible for paying on behalf of its employees, which can include federal and state income taxes, Social Security, and Medicare taxes.