On October 10,2010,Printfast Company Sells a Commercial Printer for $2,350

question 114

Multiple Choice

On October 10,2010,Printfast Company sells a commercial printer for $2,350 with a one year warranty that covers parts.Warranty expense is project to be 4% of sales.On February 28,2011,the printer requires repairs.The cost of the parts for the repair is $80 and Printfast pays their technician $150 to perform the repair.What is the warranty liability at the end of 2011?

• A)$14.00
• B)$84.80
• C)$94.00
• D)$0,there is no expense at the end of 2011
• E)$230.00

Comprehend the criteria for specifying and measuring performance in organizations.

Grasp the concept of earnings-at-risk pay plans and their characteristics.

Distinguish between merit pay and incentive pay.

Recognize examples of various reward systems used in organizations.

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and equity at a specific point in time.

Product Costs

The total expenses involved in manufacturing a product, including direct labor, direct materials, and manufacturing overhead.

Revenue

The total amount of money generated from the sale of goods or services before any expenses are subtracted.

Production Supervisor

An individual responsible for overseeing the daily operations of manufacturing plants and ensuring that production targets are met efficiently and safely.