Which of the following statements is a characteristic of an effective control system?
A. It should indicate the ability a company has to pay its current liabilities.
B. It should indicate cause-and-effect relationships.
C. It should not be the responsibility of one individual.
D. It should not be quantifiable.
Answer: B
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Which of the following is a demographic factor that a company should consider before deciding to enter into a new country?
A) transportation structure B) natural resources C) political stability D) languages E) education
When a joint cost is allocated based on pounds of output, all products will:
a. Have a sales value greater than their cost. b. Have the same joint cost per pound. c. Be salable at the split-off point. d. Have no disposal value at the split-off point.
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Indicate whether the statement is true or false
The state of Arizona has passed a tax reform bill that taxes property owners at a specified rate with the exception of mines and utilities. Both mines and utilities are assigned a higher rate of tax for their properties. A state legislator commented on
the bill, "In some of these small towns, without the higher rate of taxation for mines and utilities, the schools in these towns would suffer because the property is worth nothing and there are no property tax dollars coming in. We have to tax these area's wealthiest citizens at a different rate and those citizens happen to be the mining companies and the public utilities." Is the tax constitutional?