1)Which one of the following is an example of a period cost?

1. A change in benefits for the union workers who work in the New York plant of a Fortune 1000 manufacturer.
2. A box cost associated with computers.
3. Workers' compensation insurance on factory workers' wages allocated to the factory.
4. A manager's salary for work that is done in the corporate head office.

3) If a plant is operating at full capacity and receives a one-time opportunity to accept an order at a special price below its usual price, then:

1. the order will likely be rejected.
2. the order will likely be accepted.
3. fixed costs are not relevant.
4. only variable costs are relevant.

5)Which of the following willnotresult in an unfavorable controllable margin difference?

1. Sales under budget; costs under budget

2.Sales exceeding budget; costs under budget

3.Sales exceeding budget; costs over budget

4.Sales under budget; costs over budget

La More Company had the following transactions during 2016:

• Sales of $9,000 on account
• Collected $4,000 for services to be performed in 2017
• Paid $3,750 cash in salaries for 2016
• Purchased airline tickets for $500 in December for a trip to take place in 2017

7) What is La More's 2016 net income using accrual accounting?

1. $9,250
2. $9,750
3. $5,750
4. $5,250