Distinguish between cost of goods sold and operating expenses, describing the nature of these two items and their placement on a multistep income statement
Cost of goods sold includes the cost of obtaining the goods held for resale; it is deducted directly from net sales on a multistep income statement to arrive at gross margin. Operating expenses, on the other hand, include selling and general and administrative expenses; they appear directly beneath gross margin on a multistep income statement.
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Which of the following reduces price competition?
a. Increasing the number of competitors. b. Increasing the number of substituting offers. c. Wider distribution of competitor and/or substitution offers. d. High switching costs for consumers. e. Increasing surplus capacity in the industry.
Division of labor is also known as
a. Work specialization b. Chain of command c. Span of control d. Departmentalization
Leaders and organizations must also support and communicate shared values in very visible ways in the organization such as _________, ___________, and __________.
a. brochures, the website, and T-shirts b. goals, strategic plans, and the mission c. recruitment, orientation, and training d. speeches, pizza parties, and office break room walls
The 80/20 Rule is most often associated with?
a. Pareto b. Picasso c. Peter d. Plato