The Accounting Review Vol. 24 No. 4 1949
PROFESSIONAL EXAMINATIONS.
Abstract
The article presents problems that prepared by the Board of Examiners of the American Institute of Accountants and were presented as the second half of the May, 1949 C.P.A. Examination in accounting practice. The candidates were required to solve problems 1 and 2 and either problem 3 or 4. One of the question provided information that the Rheta Rose Manufacturing Company produces an item which it sells direct to consumers under its own brand. The item sells at $12.50 per unit, which is a long-established price. Due to a general decline in business activity, sales are currently being made at the rate of 5,000 units per month which is only 40% of the normal productive capacity of the plant of the company. The question includes An analysis of the costs of the company for a recent month, during which only 4,000 units were produced and 5,000 units sold. An offer has been received from a chain store by the treasurer of the company to purchase 5,000 units a month of the product with only immaterial modifications, to be shipped and billed to the individual stores. The items would be sold under the store's label and would be packed and shipped as directed by the chain at their expense.
- DOI
- 10.2308/tar-7063095
- Volume
- 24
- Issue
- 4
- Pages
- 442-448
- Language
- en
- Sources
- openalex crossref