If a firm competes in a capital-intensive industry with excess capacity, all of the following are true except:
a. price increases will be less likely.
b. price increases will be more likely.
c. companies in competitive industries face high exit barriers.
d. companies in competitive industries may experience future price decreases.
B
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After selecting a target market and a retail mix, the final element in a retail strategy is the identification of prospective wholesalers.
Answer the following statement true (T) or false (F)
Which of the following statements is true regarding variable costing?
A. Only manufacturing costs that change in total with changes in production level are included in product costs. B. It makes it easier to manipulate earnings with changes in production levels. C. It is not permitted to be used for managerial reporting. D. It treats overhead in the same manner as absorption costing. E. It is a traditional costing approach.
Which of the following statements is CORRECT?
A. One defect of the IRR method versus the NPV is that the IRR does not take account of the time value of money. B. One defect of the IRR method versus the NPV is that the IRR does not take account of the cost of capital. C. One defect of the IRR method versus the NPV is that the IRR values a dollar received today the same as a dollar that will not be received until sometime in the future. D. One defect of the IRR method versus the NPV is that the IRR does not take proper account of differences in the sizes of projects. E. One defect of the IRR method versus the NPV is that the IRR does not take account of cash flows over a project's full life.
Reva is a single taxpayer with a taxable pension of $24,000, tax-exempt interest of $8,000, and Social Security benefits of $10,000. What is the amount of her taxable Social Security benefits?
A. $5,000 B. $7,050 C. $10,000 D. $8,500