Sensenig Propeller manufactures replica antique wooden airplane propellers. In the process of production, the company generates a great deal of scrap hardwood. How can using by-product pricing benefit the company?
What will be an ideal response?
Using by-product pricing, Sensenig can seek a market for the hardwood and should accept any price that covers more than the cost of storing and delivering the by-products. This practice allows Sensenig to reduce the main product's price to make it more competitive. Sensenig might even find that the by-products themselves are profitable.
You might also like to view...
Which Act governs the information maintained by credit-reporting agencies?
a. the Sarbanes-Oxley Act of 2002 b. the Gramm-Leach-Bliley Act of 1999 c. the Fair and Accurate Credit Transactions Act of 2003 d. the Fair Credit Reporting Act of 1971
Willetta Company purchases inventory for $10,000 with terms 3/10, n/30. It then returns $2,000 of the inventory purchased to the supplier and also receives an allowance for defective inventory of $100. The company pays the amount due within the discount period. What is the amount of the discount that will be taken?
A. $240 B. $297 C. $300 D. $237
Which of the following have been levied as criticisms of TCE?
a. TCE focuses on cost minimization b. TCE understates the cost of organizing c. TCE neglects the role of social relationships in economic transactions d. All of the above
Crestfield leases office space for $7,000 per month. On January 3, the company incurs $12,000 to improve the leased office space. These improvements are expected to yield benefits for 10 years. Crestfield has 4 years remaining on its lease. What journal entry would be needed to record the expense for the first year related to the improvements?
A. Debit Amortization Expense $1,200; credit Accumulated Amortization $1,200. B. Debit Depreciation Expense $1,200; credit Accumulated Depreciation $1,200. C. Debit Depletion Expense $12,000; credit Accumulated Depletion $12,000. D. Debit Depletion Expense $3,000; credit Accumulated Depletion $3,000. E. Debit Amortization Expense $3,000; credit Accumulated Amortization $3,000.