Precision Musical Instruments,merchandisers of Musical Instruments,has Provided the Following Details

question 234

Multiple Choice

Precision Musical Instruments,merchandisers of musical instruments,has provided the following details: $$\begin{array} { | l | l | r | } \hline \text { Mar. 5 } & \text { Inventory purchased on account } & \$ 775,000 \\\hline \text { Mar. 8 } & \text { Freight in } & 45,000 \\\hline \text { Mar. 13 } & \text { Purchase returns } & 50,000 \\\hline \text { Mar. 14 } & \text { Allowances by vendor } & 15,000 \\\hline & \text { Payment made to vendor for purchases on } & \\\text { Mar. 20 } & \text { March 5 } & ?\\\hline\end{array}$$ Credit terms are: 3/20,n/45,FOB shipping point.Calculate the net cost of inventory purchased assuming that there are no other inventory-related transactions during the month.Assume that the perpetual inventory system is used.

• A) $760,000
• B) $732,350
• C) $710,000
• D) $733,700

Identify and analyze the impact of variance components on financial performance.

Evaluate the use of standard costing for managerial decision-making and control.

Explore the implications of under-applied or over-applied overhead on financial statements.

Understand the concepts of standard costing, including the calculation of various variances.

---

Definitions:

Certification

The process of officially recognizing someone as having met certain standards, often related to education, skills, or competencies.

Long Run

A time frame where all production elements and expenses can change, providing businesses the flexibility to adapt to market fluctuations.

Short Run

A period in which at least one input in the production process is fixed, limiting the ability to adjust the production level.

Short Run

A period in economics during which some factors of production or inputs are fixed, influencing decisions on production and costs.