Bud is the credit manager at a motorcycle dealer, and the dealership is behind sales quota so far this year. This afternoon, a customer applied for a $20,000 loan to purchase the motorcycle he has chosen. Bud engages in motivated blindness when he
A) approves the credit application because he likes the way the customer dresses.
B) approves the credit application because it is filled out carefully.
C) turns down the credit applicant because he is driving a competitive brand motorcycle.
D) overlooks the fact that the applicant is facing a home foreclosure.
Answer: D
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Trade receivables are amounts due from customers and non-trade receivables are amounts due from all other parties
Indicate whether the statement is true or false
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.
A skimming pricing strategy, is used when the firm intends to make its overall profits through selling fewer units at a higher profit per unit
Indicate whether the statement is true or false
Freeze Frame, Inc. produces cameras that require three processes, A, B, and C, to complete. Digital camera model #789 is the best-selling of all the many types of cameras produced. Information related to the 550,000 units of digital camera model #789 produced annually is shown below:Direct materials$450,000Direct Labor? Department A (7,000 DLH x $21 per DLH)$147,000 Department B (25,000 DLH x $19 per DLH)$475,000 Department C (10,000 DLH x $26 per DLH)$260,000Machine Hours? Department A42,000 MH Department B23,000 MH Department C38,000 MHFreeze Frame's total expected overhead costs and related overhead data are shown in the following table:?Department ADepartment BDepartment CDirect labor hours90,000 DLH75,000 DLH42,000 DLHMachine hours67,500 MH135,000 MH53,200
MHManufacturing overhead costs$540,000$675,000$399,000a. Compute a departmental overhead rate for department A based on machine hours.b. How much overhead is associated with model 789 from department A?c. Compute a departmental overhead rate for department B based on direct labor hours.d. How much overhead is associated with model 789 from department B?e. Compute a departmental overhead rate for department C based on machine hours.f. How much overhead is associated with model 789 from department C?g What is the per unit cost of the 550,000 units of model 789? What will be an ideal response?