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NEW QUESTION 31
A retail organization mistakenly did not include $10,000 of inventory in the physical count at the end of the year.
What was the impact to the organization's financial statements?

• A. Cost of sales and net income are overstated.
• B. Cost of sales is overstated and net income is understated.
• C. Cost of sales is understated and net income is overstated.
• D. Cost of sales and net income are understated.

Answer: D

NEW QUESTION 32
Dale has 20 days to complete production of an order for an important customer. The customer wants 96 units of product that may be painted either red or white. The red units can be produced at a rate of 4 per day. The white units, because of a different quality of paint, can be produced at a rate of 7 per day. The materials for the red units cost US $80 each, while the white units cost US $120 each. Dale wants to keep costs at a minimum. What is the constraint that expresses the number of units to be produced?

• A. 4R + 7W = 96
• B. 4R + 7W = 20
• C. R + W = 20
• D. R 4) + W = 7) <20

Answer: D

Explanation:
The constraint function that expresses the number of units to be produced is R + W = -I 96, but that is not one of the answer choices. Another constraint is that the total quantities of red R) and white W) units must be produced in 20 or fewer days at a rate of 4 red units per day and 7 white units per day. Thus, the time constraint is R - 4) + W - 7) 20.

NEW QUESTION 33
The graph depicts the domestic supply of and demand for a product that is also sold in the domestic market by foreign producers. The domestic producers are protected by a tariff of the amount Pt minus Pw. Bt is the domestic price including the tariff, and Rw is the world price for the product. The effect of the tariff is to:

• A. Increase domestic production from Ob to Cc.
• B. Reduce the domestic price from ORw to ORt
• C. Increase domestic production from Oa to Ob.
• D. Reduce foreign sales in the domestic market from ac to bc.

Answer: C

Explanation:
Without the tariff, domestic production is determined by the intersection of the Pw line with the domestic supply curve at the quantity Oa. Domestic production increases from Oa to Ob as a result of the introduction of the tariff. Supply intersects the Pt line at a higher price and at a greater domestic quantity, Ob.

NEW QUESTION 34
A company manufactures banana hooks for retail sale. The bill of materials for this item and the parts inventory for each material required are as follows:

An incoming order calls for deliver," of 2,000 banana hooks in 2 weeks. The company has
200 finished banana hooks in current inventory. If no safety stocks are required for inventory, what are the company's net requirements for swag hooks and screws needed to fill this order?

• A. Option B
• B. Option A
• C. Option D
• D. Option C

Answer: A

Explanation:
The company needs 1,800 banana hooks 2,000 - 200) and therefore 1,800 swag hooks 1 1,800) and 3,600 wood screws 2 1,800). Given that 300 swag hooks and 400 wood screws are on hand, the company must obtain 1,500 swag hooks 1,800 - 300) and 3,200 wood screws 3,600 400).

NEW QUESTION 35
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