Kule,IncProduces Three Different Lines of Car Racks for Transporting Large,bulky

question 138

Multiple Choice

Kule,Inc.produces three different lines of car racks for transporting large,bulky items. Included in the cost of goods sold is $12,000 of annual rent (a fixed cost) that is distributed equally among the three product lines.As a consultant to Kule,will you recommend that they drop the luggage rack line?

• A) No,dropping the line will actually decrease overall net profits.
• B) Yes,dropping the line will increase company net profits.
• C) No,dropping the line will result in increased fixed costs.
• D) Yes,dropping the line will reduce joint costs.
• E) Yes,dropping the line will reduce cost of goods sold and increase revenues.

Understand how to calculate free cash flow from provided financial information.

Analyze and determine cash payments to suppliers based on inventory and accounts payable changes.

Understand the direct method of reporting cash flows from operating activities, including the calculation of cash payments for operating expenses.

Gain proficiency in identifying items that impact the statement of cash flows, including operational and non-operational activities.

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Definitions:

Software Development Life Cycle (SDLC)

A process for planning, creating, testing, and deploying an information system.

CAD Program

A software tool used for computer-aided design and drafting (CADD) that allows users to create, modify, analyze, or optimize a design.

Multiple-user License Agreement

An agreement that grants multiple users access to a software application under specified conditions.

Operating System

The software that manages all other programs in a computer, acting as an intermediary between computer hardware and application software.