Pluto Inc., a cosmetics company, hired a well-known movie star to appear in its advertisements. The company hoped that using a celebrity would capture the attention and interest of consumers. In this scenario, the ad illustrates the application of
A. brand-to-consumer relevance.
B. inherent drama strategy.
C. brand-to-producer relevance.
D. ad-to-consumer relevance.
E. bait-and-switch advertising strategy.
Answer: D
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Plant assets are depreciated because
a. the accrual basis of accounting requires matching of costs to revenues. b. some plant assets last longer than others. c. useful lives cannot be reasonably estimated. d. the replacement cost of plant assets may fluctuate over time.
If a company failed to make the end-of-period adjustment to move the amount of management fees that were earned from the Unearned Management Fees account to the Management Fees Revenue account, this omission would cause:
A. An understatement of liabilities. B. An overstatement of net income. C. An overstatement of equity. D. An overstatement of assets. E. An overstatement of liabilities.
Job order costing would be appropriate for companies that produce pencils.
Answer the following statement true (T) or false (F)
Discuss control mechanisms that managers can use to monitor the performance of empowered employees.
What will be an ideal response?