A Firm Has Total Assets of $311,770 and Net Fixed

question 56

Multiple Choice

A firm has total assets of $311,770 and net fixed assets of $167,532. The average daily operating costs are $2,980. What is the value of the interval measure?

• A)31.47 days
• B)48.40 days
• C)56.22 days
• D)68.05 days
• E)104.62 days

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Definitions:

Departmental Factory Overhead Rate

A rate used to allocate indirect manufacturing costs to different departments within a factory.

Direct Labor Hours

The total time workers spend producing goods or providing services that can be directly attributed to a specific product or service.

Cutting and Sewing

The process involved in the making of garments, which includes the cutting of fabric according to patterns and sewing them together to create clothing.

Activity-based Costing

A method of accounting that assigns costs to specific activities based on their use of resources, providing more accurate product costing.