The basic difference between a master budget and a flexible budget is that a:
A. flexible budget allows management latitude in meeting goals whereas a master budget is based upon a fixed standard.
B. master budget is for an entire production facility but a flexible budget is applicable to single departments only.
C. master budget is based on one specific level of production and a flexible budget can be prepared for any production level within a relevant range.
D. flexible budget considers only variable costs but a master budget considers all costs.
Answer: C
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Taffy Company requires customers to pay before products are shipped. On December 26, the company received $14,700 from the Goodie Company. On December 31, Taffy shipped half of the order to Goodie. What adjusting entry, if any, should Taffy make on December 31?
a. Debit Cash and credit Unearned Revenue for $14,700; b. Debit Cash and credit Revenue for $14,700; c. Debit Unearned Revenue and credit Revenue for $14,700; d. Debit Unearned Revenue and credit Revenue for $7,350; e. Taffy should wait until the entire order is shipped before making an adjustment.
The term marketable securities refers to the financial instruments that firms classify as held-to-maturity, trading, or available-for-sale securities, recognizing that the term does not have a precise definition in U.S. GAAP or IFRS
Indicate whether the statement is true or false
A low-cost provider strategy can defeat a differentiation strategy when
A. sellers are not charging a price premium. B. customers are basically satisfied and don't think extra attributes are worth a higher price. C. many rivals are pursuing a similar differentiation approach. D. a company can offset thinner profit margins per unit by selling enough additional units to increase total profits. E. there are few ways to differentiate a product or a service and many buyers perceive these differences valuable.
Amendments to the Securities Exchange Act in 1975 required any exchange or over-the-counter market to ________
A) register each individual market transaction with the Securities and Exchange Commission B) obtain advance approval from the Securities and Exchange Commission prior to any rule changes C) report profits and losses to the Securities and Exchange Commission on a monthly basis D) cease all trading activity in times of severe recession