Calculate Sales If the Expenses Incurred Is $160,000 and the Net

question 64

Multiple Choice

Calculate sales if the expenses incurred is $160,000 and the net margin is 75%.

• A)$480,000
• B)$640,000
• C)$360,000
• D)$570,000
• E)$600,000

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Definitions:

Lean Environment

An operational philosophy focused on minimizing waste and maximizing efficiency in the production process or organizational operations.

Conversion Costs

The combination of direct labor and factory overhead costs; in lean accounting, the account in which is accumulated the costs of direct labor and factory overhead.

Manufacturing Overhead Control

This involves managing and recording all indirect production costs associated with manufacturing operations, including utilities, maintenance, and equipment depreciation.

Backflush Accounting

A simplification of the accounting system by eliminating the accumulation and transfer of product costs by departments (intermediate departmental work in process accounts), but instead pulls the material and conversion costs directly to finished goods.