In a make or buy decision, the opportunity cost of capacity could
a. be considered to decrease the price of units purchased from suppliers.
b. be considered to decrease the cost of units manufactured by the company.
c. be considered to increase the price of units purchased from suppliers.
d. not be considered since opportunity costs are not part of the accounting records.
A
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Assume that a major customer of the company that you are auditing files for bankruptcy during the subsequent period because of a deteriorating financial condition. Neither you nor the client becomes aware of the event until the bankruptcy filing is reported. What type of subsequent event would this be?
a. Type I subsequent event b. Type II subsequent event c. Neither Type I or Type II d. Both Type I and Type II
____________________ is an economic system based on government ownership.
Fill in the blank(s) with the appropriate word(s).
A bill of lading will be negotiable if its terms are that the goods are to be delivered to "bearer" or to "the order of" a named person.?
Indicate whether the statement is true or false
Discounted cash flow (DCF) techniques answer which of the following questions?
A. Do the cash returns of the investment exceed the cash outlays? B. How does the present value of future benefits from the investment compare to the investment outlay? C. How long will it take to recover the original investment outlay? D. How many dollars in average profits are generated per dollar of average investment?