Arthur Jones has decided to start a business. He wants to manufacture lawn mowers and believes in the production concept. If this approach is taken, what will be Mr. Jones' primary areas of concentration as he builds his business?
What will be an ideal response?
Answer: This orientation holds that consumers will prefer products that are widely available and inexpensive. Managers of production-oriented businesses concentrate on high production efficiency, low costs, and mass distribution. Jones will also want an efficient production process in place. This approach is also used when a company wants to expand the market. Students may use these facts as they design their answer.
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Which of the following statements is not true with regard to the benefits derived from the FASB's conceptual framework of accounting?
A) It serves as a guide in establishing standards for the FASB. B) The Statements of Financial Accounting Concepts is the primary source of GAAP for accountants. C) It establishes the objectives of financial reporting. D) It enhances comparability between different company's financial statements.
An important numerical measure of the shape of a distribution is the
A. 5-number summary B. z-score. C. coefficient of variation. D. skewness.
In July, a company pays three years' insurance in advance. The December 31 adjusting entry is
a. Insurance Expense – Debit; Prepaid Insurance – Credit b. Prepaid Insurance – Debit; Insurance Expense – Credit c. Insurance Expense – Debit; Cash – Credit d. Prepaid Insurance – Debit; Cash – Credit
The straight-line (use) method is the most common depreciation method for financial reporting
Indicate whether the statement is true or false