If Variable Selling and Administrative Expenses Totaled $124,000 for the Year

question 127

Multiple Choice

If variable selling and administrative expenses totaled $124,000 for the year (80,000 units at $1.55 each) and the planned variable selling and administrative expenses totaled $136,500 (78,000 units at $1.75 each) ,the effect of the quantity factor on the change in contribution margin is:

• A) $3,000 increase
• B) $3,500 decrease
• C) $3,000 decrease
• D) $3,500 increase

Calculate the surplus or deficiency apportioned to shareholders in the event of liquidation.

Differentiate between ordinary, preferential, and deferred creditors in the context of company liquidation.

Identify and differentiate between joint ventures and joint operations based on their structure and contractual rights and obligations.

Understand the requirements for entering into joint arrangements, including risk management, access to new technology or markets, and control over the arrangement.

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Definitions:

Seller's Business

The overall operation, activities, and entrepreneurial endeavors associated with selling goods or services by a seller.

Place of Delivery

The agreed location where goods are to be delivered under the terms of a contract of sale.

Waived Right

A legal concept where an individual voluntarily relinquishes a known right, claim, or privilege, often through explicit declaration or by actions implying the abandonment of such right.

Late Deliveries

Instances where goods or services are provided after the expected or agreed upon delivery time, potentially causing inconvenience or breach of contract.