The Controller of Excello Manufacturing,Inc

question 12

Multiple Choice

The controller of Excello Manufacturing,Inc.,wants to use ratio analysis to identify the possible existence of idle equipment or the possibility that equipment has been disposed of without having been written off.Which of the following ratios would best accomplish this objective?

• A) Depreciation expense/book value of manufacturing equipment.
• B) Accumulated depreciation/book value of manufacturing equipment.
• C) Repairs and maintenance cost/direct labor costs.
• D) Gross manufacturing equipment cost/units produced.

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Definitions:

Erikson's Stages

A theory of psychosocial development outlining eight stages, each characterized by a specific psychological conflict that contributes to a person's growth and personality.

Intimacy Versus Isolation

A stage in Erik Erikson's theory of psychosocial development focusing on young adults' development of close, personal relationships versus feelings of loneliness and isolation.

Settling Down

The process of becoming more stable or fixed in a particular place, role, or life stage, often implying a reduction in volatility or movement.

James Marcia

A developmental psychologist known for his work on adolescent identity formation and his expansion of Erikson’s stages of psychosocial development.