Makwa Industries Has Developed Two New Products but Has Only

question 23

Multiple Choice

Makwa Industries has developed two new products but has only enough plant capacity to introduce one product during the current year.The following data will assist management in deciding which product should be selected.Makwa's fixed overhead includes rent and utilities,equipment depreciation,and supervisory salaries.Selling and administrative expenses are not allocated to individual products. For Makwa's Product L,the costs for direct material,machining labor,and assembly labor represent

• A)Conversion costs.
• B)Period costs.
• C)Prime costs.
• D)Common costs.

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Definitions:

Parol Evidence Rule

The parol evidence rule is a legal principle that prevents parties in a written contract from presenting external evidence that contradicts or adds to the written terms of the contract.

Statute Of Frauds

A legal concept that requires certain types of contracts to be written and signed in order to be legally enforceable.

At Will

Refers to employment arrangements where either the employer or employee can end the employment relationship at any time, for any reason not prohibited by law, and without prior notice.

Statute Of Frauds

A legal doctrine requiring certain agreements to be in written form and signed by all parties to be legally binding, aiming to prevent fraud and perjuries.