Higgs Enterprise's flexible budget cost formula for indirect materials, a variable cost, is $0.75 per unit of output. If the company's performance report for last month shows a $600 favorable spending variance for indirect materials and if 8,000 units of output were produced last month, then the actual costs incurred for indirect materials for the month must have been:

A) $6,000
B) $5,400
C) $6,600
D) $5,200

Technological advance is a three-step process of

A) product development, production, and marketing.
B) creative destruction, start-ups, and patenting.
C) breakthrough, consolidation, and distribution.
D) invention, innovation, and diffusion.

Which one of the following would have the greatest present value, assuming a positive discount rate?

A) $1,000 today plus $100 a month for 2 years.
B) $1,000 today plus $200 a month for a year.
C) $1,000 today plus $400 a month for six months.
D) $2,200 today plus $200 a month for six months.
E) $2,200 today plus $100 a month for a year.

Holding extra inventory to protect against a supply disruption from a supplier strike is an example of buffer inventory.

Technoco,Inc. ,a manufacturer of computers and related equipment,has been requiring wholesalers and retailers who purchase computers from it to also purchase printers as a condition of buying computers.One of Technoco's customers has challenged the legality of this practice.Which of the following factors would weigh against the illegality of this practice?

A) Evidence that Technoco's computers are generally considered to be inferior to those of its competitors
B) Evidence that many other computer manufacturers will sell computers without requiring purchases of printers
C) Evidence that Technoco is a small company whose total printer sales in the period in question amounted to $19,000
D) Evidence that Technoco's computers are generally considered to be superior to those of its competitors

Schuepfer Incorporated bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,000 units are planned to be sold in March. The variable selling and administrative expense is $3.50 per unit. The budgeted fixed selling and administrative expense is $35,800 per month, which includes depreciation of $4,500 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be:

A) $46,300
B) $41,800
C) $31,300
D) $10,500