Given that the determination of a variable transaction price may change over time, how is this change accounted for?
What will be an ideal response?
For any changes in the transaction price over the life of the contract, the seller should update the amounts allocated to the performance obligations in the same manner as the original allocation. Any amounts allocated to a performance obligation that has already been satisfied are recognized as revenue (or a reduction in revenue) in the period of the change.?
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Which of the following is not a problem associated with standard cost accounting?
a. Standard costing motivates management to produce large batches of products and build inventory. b. Applying standard costing leads to product cost distortions in a lean environment. c. Standard cost data are associated with excessive time lags that reduce its usefulness. d. The financial orientation of standard costing may promote bad decisions. e. All of the above are problems with standard costing.
Costs that are incurred when customers complain are:
a. prevention costs b. detection costs c. appraisal costs d. failure costs
Which one of the following does not affect the adjusted basis of a house held as rental property?
A) depreciation deduction B) adding a new room to the house C) painting of more than 50% of the rooms in the home D) installation of a completely new heating system
________ is the process by which managers monitor and regulate the efficiency and effectiveness of workers in performing activities necessary to achieve organizational goals.
A. Planning B. Coordinating C. Organizing D. Leading E. Controlling