Which of the following items should not be included in the cost of ending merchandise inventory?
A) units on consignment
B) purchased units in transit, shipped FOB destination
C) units on hand in the warehouse
D) both (a) and (c)
B
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Reba orders a pair of custom-made cowboy boots, C.O.D. from Home on the Range Western Wear. When the boots arrive, Reba pays the carrier for the boots, then opens the package, only to discover that the boots are the wrong snake skin color and three sizes too big. At this point
a. Reba is entitled to inspect the goods after payment (due to the C.O.D. terms) and she can reject the boots because they are nonconforming. b. Reba cannot revoke the acceptance, because the wrong color and size of the boots are not substantial impairments. c. Home on the Range can allege that Reba did not conduct a proper inspection; therefore, Home on the Range owes Reba nothing. d. Reba has no recourse; she should have known to inspect the goods before paying the C.O.D. amount.
A collection of companies decides to work together for a while to provide service for what they see as a short term window of opportunity
These firms plan to coordinate their activities by deploying sophisticated information systems to share critical data. Each of these companies is skilled at one or two core activities — design, manufacturing, distribution, marketing, and so on. This association of companies can be described as a(n) ________. Fill in the blank with the appropriate word.
A development group selection method looks for projects with fewer development delays
Indicate whether the statement is true or false
Summary balance sheet data for Greener Gardens Co. is shown below (in thousands of dollars). The company is in a highly seasonal business, and the data show its assets and liabilities at peak and off-peak seasons: Peak Off-Peak Cash$ 50 $ 30 Marketable securities0 20 Accounts receivable40 20 Inventories100 50 Net fixed assets 500 500 Total assets$690 $620 Payables and accruals$ 30 $ 10 Short-term bank debt50 0 Long-term debt300 300 Common equity 310 310 Total claims$690 $620 From this data we may conclude that
A. Greener Gardens' current asset financing policy is relatively aggressive; that is, the company finances some of its permanent assets with short-term discretionary debt. B. Greener Gardens follows a relatively conservative approach to current asset financing; that is, some of its short-term needs are met by permanent capital. C. Without income statement data, we cannot determine the aggressiveness or conservatism of the company's current asset financing policy. D. Without cash flow data, we cannot determine the aggressiveness or conservatism of the company's current asset financing policy. E. Greener Gardens' current asset financing policy calls for exactly matching asset and liability maturities.