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1) Identify and explain the primary differences between fixed and flexible budgets.
2) The process of identifying costs as direct or indirect is referred to as classifying costs
by ____________.
3) What are known current liabilities? Cite at least two examples of known current
liabilities.
4) Explain the steps involved in the liquidation of a partnership.
5) Heesacker, Inc. uses a process cost accounting system. The following operating and
cost data occurred during October:
Materials are added at the beginning of the process. Direct labor and overhead are
incurred evenly throughout the process. Prepare the October process cost summary
assuming the weighted average method of inventory costing.
6) A merchandising company's ___________ begins with the purchase of merchandise
and ends with the collection of cash from merchandise sales.
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