When the quantity of materials purchased and materials used is different, which of the following is more relevant for the purpose of calculating the direct materials price variance?
A) Standard quantity allowed
B) Actual quantity purchased
C) Actual quantity used
D) The lower of the standard quantity allowed and the actual quantity purchased
B
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Indicate whether the statement is true or false
U.S. GAAP and IFRS distinguish three categories of long-lived assets for purposes of measuring and recognizing impairment losses. The first category addresses long-lived assets except intangible assets not subject to amortization and goodwill. This category does not include:
a. property, plant, and equipment. b. patents. c. franchise rights. d. land. e. brand names and trademarks.
Which of the following statements about just-in-time delivery is FALSE?
A. Just-in-time increases the coordination needed among channel members. B. Just-in-time reduces storing and handling costs for everyone in the channel. C. Just-in-time reduces storing and handling costs for business customers. D. Just-in-time shifts greater responsibility for physical distribution backward in the channel.
Which of the following is NOT an advantage of obtaining a franchise?
A) training of employees and managers B) standardization of products and services C) marketing strategy and advertising D) having a predetermined location that guarantees a profit E) name recognition