An advantage of using bar codes rather than other means of identification of parts used by
a manufacturer is that:

• A.The movement of all parts is controlled.
• B.The movement of parts is easily and quickly recorded.
• C.Vendors can use the same part numbers.
• D.Vendors use the same identification methods.

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In recording transactions, which of the following best describes the relation between expenses and losses?

• A.Losses are extraordinary charges to income, whereas expenses are ordinary charges to income.
• B.Losses are material items, whereas expenses are immaterial items.
• C.Losses are expenses that may or may not arise in the course of ordinary activities.
• D.Expenses can always be prevented, whereas losses can never be prevented.

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The required adjusting entry at December 31 related to salaries and wages is

• A.Salaries & wages expense US $1,700 Income summary US $1,700
• B.Salaries & wages payable US $1,700 Salaries & wages expense US $1,700
• C.Salaries & wages expense US $1,700 Salaries & wages payable US $1,700
• D.Income summary US $1,700 Salaries & wages payable US $1,700

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The cost of materials has risen steadily over the year. Which of the following methods of estimating the ending balance of the materials inventory account will result in the highest profit assuming all other variables remain constant?

• A.Last-in, first-out LIFO
• B.First-in, first-out FIFO C Weighted average D Specific identification

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The Eastern division, it sells goods internals to the Western division of the company. The quoted external price in industry publications from a supplier material near Eastern in US $ 200 per ton plus transportation. It costs US $ 20 per ton to transport the goods to Western Eastern's actual market cost per ton to buy the direct materials to make the transferred product is US $100. Actual per ton direct labor is US $50. Other actual costs of storage and handling are US $40. The company president select a US $220 transfer price. This is an example of:

• A.Market-bas, d transfer pricing.
• B.Cost-based transfer pricing.
• C.Negotiated transfer pricing.
• D.Bost-plus-20% transfer pricing.

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