Kohlman Company Began Its Operations on March 31 of the Current

question 72

Multiple Choice

Kohlman Company began its operations on March 31 of the current year. Projected manufacturing costs for the first three months of business are $156,800, $195,200, and $217,600, respectively, for April, May, and June. Depreciation, insurance, and property taxes represent $28,800 of the estimated monthly manufacturing costs. Insurance was paid on March 31, and property taxes will be paid in November. Three-fourths of the remainder of the manufacturing costs are expected to be paid in the month in which they are incurred with the balance to be paid in the following month. Refer to the information provided for Kohlman Company. The cash payments for manufacturing in the month of April are:

• A) $128,000.
• B) $117,600.
• C) $156,800.
• D) $96,000.

Recognize the principles of marginal analysis in decision making.

Analyze the impact of scarcity on economic decisions.

Apply the ceteris paribus assumption to isolate variables in economic analysis.

Identify and analyze opportunity costs in various economic scenarios.

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Definitions:

Unemployment

A situation where individuals who are able and willing to work are unable to find jobs.

Office Of Management

A governmental organization responsible for producing the President's budget, among other responsibilities related to federal budget and management.

Regulatory Policies

Regulatory policies are rules established by governments or regulatory bodies to guide the operation of businesses and organizations, with the aim of protecting public welfare.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs, representing efficiency.