Depreciation is a process by which
a. replacement funds are accumulated for plant and equipment.
b. the decline in market value of plant and equipment is determined and recorded.
c. the cost of plant and equipment is allocated to expense over the time periods which benefit from the use of the asset.
d. the difference between current market value and historical cost of plant and equipment.
c
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In the mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of the following except:
A) automation. B) standardization. C) tight quality control. D) removing some services. E) customization.
Hoover Company purchased two identical inventory items. The item purchased first cost $33.00. The item purchased second cost $35.00. Then Hoover sold one of the inventory items for $62.00. Based on this information, which of the following statements is true?
A. The cost of goods sold is $33.00 if Hoover uses the LIFO cost flow method. B. The gross margin is $28.00 if Hoover uses the weighted-average cost flow method. C. The ending inventory is $35.00 if Hoover uses the LIFO cost flow method. D. The cost of goods sold is $35.00 if Hoover uses the FIFO cost flow method.
Which of the following variations cannot be predicted and can be identified only after occurrence?
a. random variations b. irregular variations c. seasonal variations d. cyclical variations
Fern's company is expanding, and she would like a foreign presence to reach broader markets and have some diversification. Fern wants a factory where rules are strictly followed, performance is high, and workers are able to accept the authority of people above them. In which of the following places should she choose to build her factory?
A. Greece B. Mexico C. Brazil D. Germany E. China