Design capacity is the theoretical maximum output of a system in a given period under ideal conditions.

The marginal product of an input is:

A) total product divided by the amount of the input used to produce this amount of output.
B) the addition to total output that adds nothing to total revenue.
C) the addition to total output that adds nothing to profit.
D) the addition to total output due to the addition of one unit of all other inputs.
E) the addition to total output due to the addition of the last unit of an input, holding all other inputs constant.

The Farmer Company uses the retail inventory method to compute ending inventory.Information for 2010 is as follows:
Required:
Determine Farmer Company's ending inventory based on the retail lower of average cost or market method.

Special order decisions should be made using variable costing because:

A) Special order decisions usually focus on fixed costs
B) Variable costing includes all overhead costs in the calculation of product costs.
C) Only variable costs will increase as a result of the special order.
D) All costs,including variable and fixed costs,must be covered by the special order pricing.
E) Fixed overhead costs will change as a result of the special order.

In Teams Competency: Steelcase,Inc. ,a group of employees visits the manufacturer of new equipment to learn firsthand how to use it.They are encouraged to watch videotapes provided by the manufacturer for quality and service guidelines.

An income bond is a bond which:

A) Is defined as paying semi-annual, fixed rate payments.
B) Provides semi-annual income for a period of ten years or more.
C) Pays interest only if the issuer has sufficient income to do so.
D) Is convertible into shares of common stock but which will continue to provide annual income for a stated period of time.
E) Pays coupon payments forever but never repays the principal.