Which of the following is a common factor in most unethical or criminal behavior incidents?

	a.	The capacity for rationalization
	b.	The presence of an opportunity
	c.	The existence of pressure
	d.	All of the above

During its most recent accounting period, Battle Creek Manufacturing Company made 5,000 units of product of which 4,500 units were sold. If the management of Battle Creek misclassified a GS&A expense as a product cost, the mistake would:

	a.	increase net income and any executive compensation bonuses that were based on net income.
	b.	increase net income and the resultant income taxes.
	c.	decrease net income, executive compensation and the resultant income taxes.
	d.	a and b.

During its first year of operations, the Johnson company paid $16,000 for direct material and $17,000 in wages for production workers. Lease payments and utilities on the administrative building amounted to $6,000. The Company owns $30,000 of manufacturing equipment. The equipment has a 4-year useful life and a $2,000 salvage value and uses straight-line depreciation. The company produced 5,000 units and sold 4,000 units at a price of $15.00 a unit. The average cost per unit used to determine cost of goods sold and ending inventory is which of the following amounts?

	a.	$10.0
	b.	$9.2
	c.	$8.0
	d.	$11.5

Brock Company makes candy. During the most recent accounting period Brock paid $3,000 for raw materials, $4,000 for labor, $6,000 for general, selling, and administrative expenses and $2,000 for overhead costs that were incurred to make candy. Brock started and completed 10,000 units of candy of which 8,000 were sold at a price of $10 a unit. Based on this information Brock would recognize which of the following amounts as cost of goods sold on the income statement?

	a.	None of the above.
	b.	$7,200
	c.	$9,000
	d.	$12,000