Stan owns a small landscaping business called GreenScapes. When buying a new pickup truck for his landscaping business, Stan negotiated with Capitol Dodge, a dealer, with the agreement that GreenScapes would be the service company Capitol Dodge used for all of its landscaping needs. This is an example of
A. a new task purchase.
B. a straight rebuy.
C. a modified rebuy.
D. reciprocity.
E. exclusive dealing.
Answer: D
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A company purchased 200 units for $40 each on January 31. It purchased 200 units for $30 each on February 28. It sold a total of 250 units for $100 each from March 1 through December 31. If the company uses the last-in, first-out inventory costing method, calculate the cost of ending inventory on December 31. (Assume that the company uses a perpetual inventory system.)
A) $4,500 B) $9,000 C) $6,000 D) $150
What is the first step in enhancing the moral consciousness of employees, which is itself an initial part of the ethical decision-making process?
a. raising understanding of mindfulness b. teaching the spectrum of emotional responses c. engaging in role-playing exercises d. raising moral awareness and sensitivities
The state of Ohio has passed a law requiring that every automobile be inspected at least once a year for pollution control. Anson Enterprises is considering entering into this type of business. After extensive studies, Mark Anson has developed the following set of projected annual data on which to make his decision: Direct service labor $363,000.00 Variable service overhead costs 270,000.00 Fixed
service overhead costs 280,000.00 Marketing expenses 120,000.00 General and administrative expenses 170,000.00 Minimum profit 90,000.00 Cost of assets employed 500,000.00 Anson believes that his company will inspect 100,000 automobiles per year. The company earns an average of 18.75 percent return on its assets. The price to be charged for inspecting each automobile using the gross margin pricing method would be calculated as A) ($1,203,000.00 ÷ 100,000 ) + [($1,203,000.00 ÷ 100,000 ) x ($90,000 ÷ $1,203,000.00)]. B) ($1,203,000.00 ÷ 100,000 ) + [($500,000 ÷ 100,000 ) x 0.1875]. C) ($913,000.00 ÷ 100,000 ) + {($913,000.00 ÷ 100,000 ) x [($90,000 + $290,000 ) ÷ $913,000.00]}. D) none of these options.
Which of the following is not a factor that indicates a business enterprise that establishes a variable interest entity (VIE) should consolidate such VIE with its own financial statements?
A. The business enterprise establishing a VIE has the obligation to absorb potentially significant losses of the VIE. B. The business enterprise establishing a VIE has power through voting rights to direct the entity's activities that significantly impact economic performance. C. The business enterprise establishing a VIE has the right to receive potentially significant benefits of the VIE. D. The business enterprise establishing a VIE receives risks and rewards of the VIE in proportion to equity ownership. E. The business enterprise establishing a VIE is a primary beneficiary for the VIE.