The Sakicki Manufacturing Company Has Two Service Departments - Purchasing

question 24

Multiple Choice

The Sakicki Manufacturing Company has two service departments - purchasing and maintenance,and two production departments - fabrication and assembly.The distribution of each service department's efforts to the other departments is shown below:
The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing $96,000.Maintenance 18,000.Fabrication 72,000.Assembly 48,000.The total cost accumulated in the assembly department using the direct method is (calculate all ratios and percentages to 4 decimal places,for example 33.3333%,and round all dollar amounts to the nearest whole dollar) :

• A)$114,800.
• B)$119,200.
• C)$117,000.
• D)$108,000.
• E)$126,000.

Understand the difference between direct and indirect real estate investments.

Identify the various types of real estate investment trusts (REITs) and their characteristics.

Comprehend the role of financial instruments such as participation certificates and Ginnie Maes in real estate investment.

Learn about the legal structures and liability implications for different types of real estate investment entities.

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Definitions:

Total Profit

The total income of a business after all expenses and costs have been deducted from its total revenue.

Optimum Efficiency

The state in which resources are allocated in the most efficient manner possible, maximizing outputs while minimizing wastes and costs.

Perfect Competitor

An idealized market structure in which many firms produce identical products, entry and exit are easy, and all participants have perfect information.

Long Run

A period in economics in which all factors of production and costs are variable, allowing for full adjustment to change.