The big risk of employing an outsourcing strategy is
A. hollowing out a firm's own capabilities and losing touch with activities and expertise that contribute fundamentally to the firm's competitiveness and market success.
B. increasing the firm's risk exposure to both supply chain management failures and shifts in the composition of the industry value chain.
C. putting the company in the position of being a late mover instead of an early mover.
D. hurting a company's R&D capability.
E. causing the company to become partially integrated instead of being fully integrated.
Answer: A
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Which of the following is not a factor adding to the complexity of materiality judgments made by auditors?
a. Regulators pay particular attention to the judgmental aspects of auditor materiality decisions. b. SEC regulators do not believe it is appropriate to use percentage terms to substitute for a full analysis of all relevant considerations regarding the magnitude of misstatement. c. Regulators focus on how materiality decisions can affect client financial results. d. SEC regulators have few requirements for auditors to comply with since the AICPA fills that role.
Answer the following statements true (T) or false (F)
1) The accounts receivable turnover ratio indicates whether a company could pay all its current liabilities if they were to become due immediately. 2) The accounts receivable turnover ratio is computed by dividing net credit sales by ending net accounts receivable. 3) The number of times a company collects the average accounts receivable balance in a year is known as the accounts receivable turnover ratio. 4) Days' sales in receivables is also called the collection period. 5 The days' sales in receivables indicates the number of days it takes to collect the average level of accounts receivable.
If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are
A) n/30 B) FOB shipping point C) FOB destination D) consigned
Match each of the following terms with the appropriate definitions.
A. Payroll taxes on employers assessed by the federal government to support the federal unemployment insurance program. B. Taxes that fund Social Security and Medicare, assessed on both employer and employees under the Federal Insurance Contributions Act. C. A potential obligation that depends on a future event arising from a past transaction. D. Obligations of a company requiring payment in more than one year or operating cycle. E. A table of amounts of income tax to be withheld from employees' wages. F. Known obligations of an uncertain amount that can be reasonably estimated. G. Gross pay less all tax and voluntary deductions. H. A measure provided by a state to employers that reflects a company's stability in employing workers. I. A number indicated on an employee's Form W-4 that is used to reduce the amount of federal income tax withheld from an employee's pay. J. A seller's obligation to replace or correct a product or service that fails to perform as expected within a specified period.