Question

Please I am in exam and please solve this questions in about 20 minutes... Please fast

QUESTION 4

1.       Situation: Gamma and Delta both make wedding cakes, but are not direct competitors. Gamma makes cakes in bulk for low-end retailers. While they do provide a limited variety of cakes, customers are limited to purchasing from the cakes listed on the website. Delta makes cakes for high-end customers. Each cake Delta makes is unique and designed to meet the precise needs of the client.

Choose the firm that makes the following statement true.

____________ is more likely to have a job order costing system.

		Gamma
		Delta

QUESTION 5

1.       Situation: Gamma and Delta both make wedding cakes, but are not direct competitors. Gamma makes cakes in bulk for low-end retailers. While they do provide a limited variety of cakes, customers are limited to purchasing from the cakes listed on the website. Delta makes cakes for high-end customers. Each cake Delta makes is unique and designed to meet the precise needs of the client.

Choose the firm that makes the following statement true.

____________ is likely more concerned about cost efficiency.

		Gamma
		Delta

QUESTION 6

1.       Calculating unit margins is easier in process shops than job shops.

True

False

1.      An error was made in the computation of the percentage of completion of the current year’s ending work-in-process (EWIP) inventory. As a result of the error, a lower percentage of completion was assigned to each physical unit in EWIP than actually was the case.  What is the effect of this error on net income?

Due to the error, net income was ________________.

(Fill in the blank)

		not misstated
		overstated
		understated

Answer 1

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Question 4
Delta is more likely to have a job order costing system as Delta is making cakes specified by the customers.
Question 5
Gamma is likely more concerned about cost efficiency as catering low end clients
Question 6
FALSE
Question 1
Net income will be understated as due to the error COGS will be overstated