Answer the following statements true (T) or false (F)
1. Total variable costs change in direct proportion to changes in the volume of production.
2. Variable cost per unit is constant throughout various relevant ranges.
3. If the volume of activity doubles in the relevant range, total variable costs will also double.
4. Fixed costs per unit is inversely proportional to the volume of units produced.
5. Fixed costs per unit decrease as production levels decrease.
1. True
2. False
3. True
4. True
5. False
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A trade discount is also called a
A. stock discount. B. functional discount. C. seasonal discount. D. cumulative quantity discount. E. noncumulative quantity discount.
Advertising allows the buyer to receive and compare the messages of various competitors
Indicate whether the statement is true or false
An employee from Hamid's Automobile Inc. called up Horner's home to repair the latter's car. It was repaired in Horner's garage. When Horner defaulted on the bill, Hamid's employee went to his house to take possession of the car, claiming that the corporation had a lien on the car by virtue of the work performed on it. According to this scenario, which of the following statements is true?
A. The corporation has no lien on the car because the employee did not notify Horner at the time of the repairs that a lien would be claimed. B. The employee is entitled to the possession of the car because he was the one who performed the repairs on the car. C. Hamid's employee is justified in his actions as the corporation did have a lien on the car by virtue of the work performed on it by its employee. D. The corporation has no lien on the car, because its employee came to Horner's house to make the repairs and so Horner never gave up possession of his car to Hamid's.
George is the CEO of Fallon Inc, a multinational corporation operating in several European and Asian countries. In the past few years George has noticed several demographic, economic and legislative trends, all of which have the potential of impactinghis company’s bottom line profits. George has decided not to react to these tredns and to leave his current policies in place. What challenges/consequences might George face by ignoring these trends.
What will be an ideal response?