Effective January 2, 2014, Moldaur Co adopted the accounting principle of expensing advertising and promotion costs as they are incurred. Previously, advertising and promotion costs applicable to future periods were recorded in prepaid expenses. Moldaur can justify the change, which was made for both financial statement and income tax reporting purposes. Moldaur's prepaid advertising and
promotion costs totaled $250,000 at December 31 . 2013 . Assume that the income tax rate is 40 percent for 2013 and 2014 . The adjustment for the effect of the change in accounting principle should result in a net charge against income in the income statement for 2014 of
a. $0.
b. $100,000.
c. $150,000.
d. $250,000.
A
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The five key components of the marketing plan are
A. executive summary, situation analysis, marketing strategy, financials, and controls. B. executive summary, situation analysis, positioning, financials, and implementation. C. mission statement, situation analysis, promotion strategy, financials, and controls. D. executive summary, market positioning, marketing strategy, financials, and implementation. E. mission statement, situation analysis, marketing strategy, financials, and controls.
To drive its competitors out of a certain geographic segment of its market, Fryin' Potatoes, Inc, sets the prices of its products below cost for the buyers in that area. This is
a. a refusal to deal. b. none of the choices. c. predatory bidding. d. price discrimination.
Lewis, an employee of Silos, Inc, makes a substantial mathematical error in totaling the estimated costs for a project for which AgriCo-op is seeking bids. Consequently, Silos's bid is significantly low. Refer to Fact Pattern 14-2. Any contract with AgriCo-op that includes the mistake may be rescinded A) if the mistake involves a material fact
B) if the mistake involves any fact. C) if the mistake is one of value or quality. D) under no circumstances.
Companies delivering mixed concrete know that it cannot be shipped farther than 25 miles because the concrete might harden in the truck. Carter Concrete Supply Co is the only supplier of mixed concrete to customers within a 30-mile radius. Carter Concrete Supply Co is an example of which one of the following competitive structures?
A. Monopoly B. Oligopoly C. Monopolistic competition D. Pure competition E. Monopsony