Gregorich Incorporated Makes a Single Product--A Critical Part Used in Commercial

question 26

Multiple Choice

Gregorich Incorporated makes a single product--a critical part used in commercial airline seats.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below:
The fixed overhead budget variance is:

• A) $20,000 U
• B) $20,000 F
• C) $62,070 F
• D) $62,070 U

Prepare an owner’s equity statement.

Calculate net income or loss by analyzing changes in owner's equity.

Understand and apply accounting terminology relevant to sole proprietorships.

Identify and explain the major fields and career opportunities in accounting.

---

Definitions:

Cost of Capital

The rate of return that a business must earn before generating value, taking into account the cost of funding the business through equity or debt.

Capital Structure

The combination of a corporation's long-term obligations, particular short-term liabilities, common stock, and preferred shares, employed to fund its general activities and expansion.

Net Present Value

A calculation used to determine the value of a future stream of income or expenses discounted back to the present value.