Fraud is defined as any wrongful act or threat that prevents a party from exercising free will when executing a contract
Indicate whether the statement is true or false
FALSE
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During August, Boxer Company sells $363,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 4% of the selling price. The warranty liability account has a credit balance of $13,500 before adjustment. Customers returned merchandise for warranty repairs during the month that used $10,100 in parts for repairs. The entry to record the customer warranty repairs is:
A. Debit Warranty Expense $11,120; credit Estimated Warranty Liability $11,120. B. Debit Estimated Warranty Liability $14,520; credit Parts Inventory $14,520. C. Debit Warranty Expense $14,520; credit Estimated Warranty Liability $14,520. D. Debit Warranty Expense $10,100; credit Estimated Warranty Liability $10,100. E. Debit Estimated Warranty Liability $10,100; credit Parts Inventory $10,100.
The main approaches that companies use to develop employees include:
A. formal education, assessment, and experience. B. job rotation, promotion, and assessment. C. job analysis, job description, and workflow analysis. D. psychological tests, assessment centers, and promotion. E. job rotation, team building, and assessment.
Former NFL coach Joe Gibbs is highly sought after as a guest speaker. His fee can run as high as $150,000 for a single two-hour appearance. Recently, he was asked to speak at a seminar offered by the National Sports in Education Foundation (NSEF). Due to the charitable nature of the organization, Mr. Gibbs offered to speak for $100,000. NSEF planned to invite 350 guests who would each make a $500 contribution to the organization. The Foundation's executive director was concerned about committing so much of the organization's cash to this one event. So instead of the $100,000 fee she countered with an offer to pay Mr. Gibbs 50% of the revenue received from the seminar and no other payments.Required:(a) Classify the two offers in terms of cost behavior (fixed vs. variable).Scenario A, NSEF
pays Gibbs a $100,000 fee:Scenario B, NSEF pays Gibbs 50% of revenue:(b) Compute the budgeted income (assuming there are no other expenses) under each of the following scenarios:1) NSEF agrees to pay the $100,000 fee, and 350 guests actually attend the seminar; and2) NSEF pays Mr. Gibbs 50% of revenue, and 350 guests attend the seminar.(c) For each scenario ($100,000 fee vs. 50% of revenue), compute the percentage increase in profit that would result if the Foundation is able to increase attendance by 20 percent over the original plan (to a total of 420). (Round the percentages to the nearest whole numbers.)(d) For each scenario, compute NSEF's cost per contributor if 350 attend and if 420 contributors attend. (Round the cost per contributor to two decimal points.)(e) Summarize the impact on risk and profits of shifting the cost structure from fixed to variable costs. What will be an ideal response?
American Girl DollThe American Girl catalog began as a concept to introduce today's girls to girls who lived in the past. Each historically accurate doll is carefully crafted and dressed and has books to describe her life. For example, Kristen is an 1854 pioneer girl who is growing up in Minnesota. Her story begins with her long sea voyage from Sweden. The basic doll dressed in a calico dress and striped apron plus the hardcover story of how she got to Minnesota costs $90. Six more hardback books of Kristen's life are available for $74.95. Kristen's nightgown costs $20, and a matching one for the doll owner is an additional $38. Buy both together and the price is only $50. A hand-painted wooden bed and trunk for Kristen are available for $213. Shipping costs vary with the price of the
merchandise ordered.Refer to the American Girl Doll. In terms of producing the doll and its accessories, the calico fabric used to make Kristen's dress is an example of a(n): A. markup cost B. variable cost C. fixed cost D. derived cost E. elastic cost