Theatrical Supplies Company contracts to sell to Unique Costumes, Inc., seven hundred plastic masks at $1 each to be delivered by October 1. Theatrical knows that Unique will use the masks to make Halloween costumes. Unique usually makes $7,000 profit from the costumes' sale. Theatrical fails to deliver on October 1. Unique attempts to buy substitute masks, but must pay $1.20 for each and take delivery on October 15, cutting Unique's sales in half. Unique sues Theatrical. What is the measure of recovery?
What will be an ideal response?
The buyer exercised the buyer's right to cover and should get the difference between the substitute goods' price and the contract price ($.20 per item). The buyer should also get any incidental damages, and, because the seller knew the purpose of the purchase, the buyer should get consequential damages, which could include the profits lost on the unmade sales.
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All line items in common-size comparative income statements are stated as a percentage of net income
a. True b. False Indicate whether the statement is true or false
Explain why the lower of cost or market rule is used to value inventory.
What will be an ideal response?
Which the following is not a reason for a public company to receive an audit?
a. Potential bias in providing information. b. Closeness between a user and the organization. c. Complexity of the processing systems. d. Remoteness between a user and the organization.
By the late 1970s, U.S. executives responded to the manufacturing crisis existing in the United States by ________.
A. focusing on improving finance and marketing functions B. minimizing corporate authority and visibility of executives C. reducing the spending on technology and processes D. investing heavily in improving manufacturing technology