Money spent on employee training is a
a. Empowerment cost.
b. Prevention cost.
c. Pareto cost.
d. Appraisal cost.
b
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Duke Power & Light just spent $10 million to repair one of its electrical grid substations that was heavily damaged by a lightning strike. The loss was not insured.Required:Why would a utility ask the public service commission for approval to treat the $10 million as an asset for rate-making purposes rather than as an allowed expense?
What will be an ideal response?
Reporting inventory at the lower of cost or market provides a representationally faithful value of inventory; therefore, the application of the lower of cost or market rule is consistent with the materiality principle
Indicate whether the statement is true or false
A change from an accelerated depreciation method to the straight-line depreciation method should be accounted for as a
a. change in accounting estimate. b. change in accounting estimate effected by a change in accounting principle. c. correction of an error. d. a prior period adjustment.
What is the name of the process for developing new businesses as an outgrowth of a company's established business operations?
A. value chain integration B. resource capability process C. business launch D. diversification activity capabilities E. corporate venturing