Discuss how institutional customers differ from other types of business customers such as producers or resellers. Give two points of differentiation.
What will be an ideal response?
Institutions seek to achieve goals that differ from ordinary business goals such as profit, market share, or return on investment. The institutional market also is characterized by great diversity. Institutional organizations include schools, hospitals, colleges and universities, churches, labor unions, civic clubs, foundations, and so on. These diverse organizations have vastly different needs and buying behaviors.
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Magoro, Inc. has two processes—Coloring Department and Mixing Department. The company sold 450 gallons on account at $110 per gallon. The total cost of processing was $385,000 for 5,500 gallons of paint. Throughout the year, the company used a predetermined overhead allocation rate to allocate $80,000 and $90,000 of indirect costs to the Coloring Department and Mixing Department, respectively. The actual overhead costs incurred amounted to $150,000 at the end of the year.
What are the journal entries to record the sale of goods and the adjustment for over/underallocated manufacturing overhead at the end of the year if the company follows a perpetual inventory system and process costing?
A company's interest expense is $8,000. Its income before interest expense and income taxes is $32,000. Its net income is $9,600. The company's times interest earned ratio equals:
A. 4.0. B. 0.30. C. 0.83. D. 3.33. E. 0.25.
Which of the following statements about retirement ages in defined benefit pension plans is (are) true?
I. The normal retirement age in most plans is 65. II. For a defined benefit plan, the early retirement age is the earliest age an employee can retire with full, unreduced benefits. A) I only B) II only C) both I and II D) neither I nor II
________ look at a firm's ability to meet its long-term obligations, as well as its overall optimal use of debt
A) Leverage measures B) Profitability measures C) Liquidity measures D) Efficiency measures