The balance sheet equation underlies the recording of transactions and events. It captures the financial statement effects of operating, investing, and financing transactions—three key activities of business firms
Indicate whether the statement is true or false
T
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Doric Agricultural Corporation uses a predetermined overhead allocation rate based on the direct labor cost. The manufacturing overhead cost allocated during the year is $270,000. The details of production and costs incurred during the year are as follows:
What is the predetermined overhead allocation rate applied by the corporation? (Round your answer to two decimal places.)
A) 96.30%
B) 65.38%
C) 158.82%
D) 33.27%
Which of the following is a method used to help ensure the solvency of insurers?
A) commercial lines deregulation B) risk-based capital standards C) use of credit-based insurance scores D) use of no filing required rating laws
Use this information for questions that refer to the Pricing 1 case. (WPI) case.As a project for her marketing class, Emily Washington is researching how five local businesses price their products. The following are brief sketches of what she has learned about each company:At Bella Computers, Emily has discovered that the company earned a 6 percent return on investment this year and wants to increase this to 9 percent next year. To its retailer customers, Bella Computers gives cash discount terms of 2/10, net 30. It also gives retailers a 3 percent reduction on the invoice amount for advertising Bella products locally. Bella gives retailers' salespeople 2 percent of the sale price for each Bella Computer they sell.At Ross Pharmaceuticals, she learned that the company has invested
heavily in developing a new product that recently received a patent. Because cash is tight, the company wants to achieve a rapid return on its investment. The new patented product is badly needed in the market, so a very inelastic demand curve is expected.Digital Imaging makes photographic prints for wedding photographers. It is very concerned about competitor reactions to its pricing, so it has selected prices that will not draw the attention of the competition and will not start a price war. Digital Imaging offers customers an 8 percent discount if their purchases exceed $20,000 a year.Jack's One-Hour Cleaners recently opened for business. The company invested a lot of money in new equipment and feels that it has to quickly get "at least 10 percent market share to stay in the game." This need obviously influences the company's pricing decisions. Jack's also plans to offer customers 20 percent discounts on any order over $20.National Printing Equipment (NPE) produces equipment that helps to print newspapers and magazines. The company sells directly to printers and through wholesalers. Its salespeople negotiate prices with individual customers and often have to match competitors' prices. NPE has a new product-the Gutenberg NP201-with some competitive advantages now, but competitors are expected to follow quickly with similar products. The new product is being introduced into a market with elastic demand. Regarding freight charges for its equipment, NPE's invoice reads, "Seller pays the cost of loading equipment onto a common carrier. At the point of loading, title to such products passes to the buyer, who assumes responsibility for damage in transit, except as covered by the transportation agency." Bella Computers' pricing objective is best described as A. status quo-oriented. B. target return. C. profit-oriented. D. sales-oriented. E. None of these describes Bella Computers' pricing.
Althea Caldwell is the director of Arizona's Department of Health Services (DHS). DHS is charged the administration of the state's behavioral health system and is responsible for contracting with private providers for millions of dollars of mental
health care each year for eligible patients. Ms. Caldwell accepted a $20,000 per year director position for a hospital group corporation. One of the hospitals in the group was one to which state contracts for mental health treatment had been awarded. One month after accepting the position, Ms. Caldwell asked the state's attorney general for an opinion as to whether she had a conflict of interest. Does Ms. Caldwell have a conflict of interest?