Winston Co

question 3

Multiple Choice

Winston Co.manufactures office furniture.During the most productive month of the year,3,500 desks were manufactured at a total cost of $84,400.In its slowest month,the company made 1,100 desks at a cost of $46,000.Using the high-low method of cost estimation,total fixed costs are:

• A)$56,000.
• B)$28,400.
• C)$17,600.
• D)$29,900.

Recognize the role and risks of accruals in financial management.

Identify conservative versus aggressive working capital financing policies.

Comprehend the impact of policy decisions on the control of current assets.

Familiarize with various short-term financing options and their characteristics.

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Definitions:

Harsh Upshifts

This refers to abrupt and uncomfortable upward gear changes in an automatic transmission.

Mechanical Modulator

A device in automatic transmission systems that controls shifting pressure in response to engine load.

Governor Filter

A filter used in the governor system of an engine to clean the oil or fluid that controls the speed and prevents contamination.

Magnetic Drain Plug

A type of plug placed in the oil pan or similar component, featuring a magnet that attracts and holds metal fragments to prevent them from circulating in the system.