Before using activity-based costing (ABC), managers must apply the cost-benefit principle to the additional recordkeeping costs associated with ABC.
Answer the following statement true (T) or false (F)
True
Applying cost-benefit principles is fundamental to choosing any costing system.
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Assume the football team is set up as a limited partnership Lenny is the only general partner and Sarah and Sam are the only limited partners. The team is sued for negligence because an individual who turned to see the quarterback running naked crashed her car. Which of the following is true
a) Lenny has unlimited liability and Sarah and Sam have liability limited to their investment in the firm. b) The only one with liability is the company itself. c) Lenny, Sarah and Sam all have unlimited liability. d) Lenny has liability limited to his investment in the firm and Sarah and Sam have unlimited liability.
Nelson, an accountant, enters into a contract to provide services to Operational Processes, Inc (OPI). Nelson does not finish the work within the contract's deadline. This causes OPI to fail to meet certain other deadlines owed to Prime Bank, which results in the firm's payment of penalties to the bank. OPI may be entitled to A) payment from Nelson of the amount of the penalties in damages
B) specific performance of any future contract with Nelson. C) an injunction against future breaches of contract by Nelson. D) no damages or other relief because Nelson is not liable.
The cost of a new building that is currently under construction, not for sale but for a company's own use, is reported on the balance sheet:
A. after construction is complete. B. as an asset called Construction in Progress. C. as an asset called Work in Process. D. as a liability until construction is complete.
Companies use carriers for WAN transmission because ________
A) companies lack rights of way B) carriers have extremely strong security C) Both A and B D) Neither A nor B