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South Coast Appliance Store is a small company that has hired you to perform som

ID: 2398419 • Letter: S

Question

South Coast Appliance Store is a small company that has hired you to perform some management advisory services.

The following information pertains to 2017 operations.

Sales? (5,000 microwave? ovens) ?$5,000,000

Cost of goods sold ?825,000

Store? manager's salary per year ?110,000 Operating costs per year ?230,000

Advertising and promotion per year ?30,000

Commissions? (4.0% of? sales) ?200,000

Which cost estimation method is being used by South Coast Appliance? Store?

A. the? cost-volume-profit analysis method B. the marginal costing method C. the account analysis method D. the operating costing method

Explanation / Answer

The account analysis method is being used by South Coast Appliance Store

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