A small business determines the cost of providing a product or service and then adds a given percentage to it based on the level of profit determined to be appropriate. This is called
A. bootstrap marketing.
B. cost-plus pricing.
C. setting the pricing floor.
D. the loss leader strategy.
Answer: B
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Which of the following statements is not true regarding the use of a judgmental approach by auditors in determining whether a misstatement is clearly trivial?
a. The determination is based on past auditor experience. b. The determination is usually not very defensible to third-party users. c. The determination is usually not very defensible to regulators. d. The determination uses percentages for the likelihood of misstatement.
Which of the following should LEAST likely be kept by salespeople?
A) shipping labels B) customer files C) call reports D) expense records E) sales records
For higher-income individuals the marginal tax rate will be
A) greater than the average tax rate. B) equal to the average tax rate. C) less than the average tax rate. D) above, equal to, or less than the average tax rate. It is impossible to know given the present information.
Rainey signs a promissory note for $10,000 in favor of State University (SU). The note is undated but specifies that it is "payable one month after date." This note is
A. negotiable. B. nonnegotiable, because one month is not a reasonable time. C. nonnegotiable, because there is no option to pay early. D. nonnegotiable, because the maturity date cannot be determined from the face of the instrument.