Plaxo Inc., is going through tough times. Latest financial reports indicate that overall profitability of the company is down by 15 percent and they are losing market share. The situation seems quite bleak and it is unlikely that the company's prospects will improve in the near future unless they take some drastic measures. In a board meeting, one of the directors proposes the idea of offering senior employees the option of voluntary retirement. Which of the following, if true, would support this proposal?
A. The company has a last-in-first-out decruitment policy.
B. The younger work force is more efficient while the older workforce is more loyal.
C. The older employees will prefer to voluntarily retire as opposed to being laid-off.
D. The company is committed to maintaining workforce diversity at all costs.
Answer: C
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A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge, $500, was added to the invoice amount. On June 20, it returned $800 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:
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Brandon, Inc. has 500 units in inventory that were purchased for $24 each. These units have a current market value of $30 each. Brandon's supplier has just announced a price increase to $33 that will go into effect at the beginning of next year. Management should:
A. adjust the inventory account using the cost, which is $24.00. B. adjust the inventory account using the average of the recent market values, which is $33.00. C. adjust the inventory account using the lower of the recent market values, which is $30.00. D. make no adjustments to the inventory account.