The Ivory Islands Resort offers a forty percent discount on lodging from September through December every year, due the dramatic drop in the number of visitors during that period-largely because of unfavorable weather conditions. This type of price reduction is called a
A. noncumulative quantity discount.
B. functional discount.
C. trade discount.
D. seasonal discount.
E. cumulative quantity discount.
Answer: D
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Which of the following statements holds true for the purchase of staple merchandise?
A. Staple merchandise is purchased using a continuous replenishment system by monitoring sales and generating replacement orders. B. The main objective of staple merchandise buying is to be as close to out of stock as possible. C. Buyers often do not reorder additional merchandise after placing the first order. D. The staple merchandise buying system requires more experienced buyers. E. Buyers for staple merchandise categories have much less flexibility in correcting forecasting errors.
Which of the following is true of the cash budget?
A) It is prepared first in the master budget. B) It is also called budgeted balance sheet. C) It consists of cash receipts and cash payments. D) It is the base for the preparation of the sales budget.
Answer the following statements true (T) or false (F)
According to signalling theory, firms have an economic incentive to report bad news.
The two methods of accounting for cost flows in process costing are weighted average and last-in first out
Indicate whether the statement is true or false