Scenario A: Ronaldo is doing some management consulting for three companies. Safety Solutions Inc. is a large corporation that was established in the 1960s. It produces safety mechanisms for industrial machinery. The organization uses a strict set of rules and regulations with its workforce and tracks a large amount of data using statistical techniques. Eastern Plains Employment Associates is a network of regional employment centers that was started eight years ago. Its management uses a control system that ties salaries to prevailing salary standards, and the center directors are evaluated on the basis of the profitability of their centers. Resources are moved between centers on the basis of transfer prices. Ocean Innovations Inc. is a software company. Its control process is very future
oriented. It likes to prevent problems before they arise, using policies, procedures, and rules.Which of the following control systems does Eastern Plains Employment Associates utilize?
A. clan control
B. bureaucratic control
C. market control
D. feedforward control
E. concurrent control
Answer: C
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Which of the following should be shown on a statement of cash flows under the financing activities section?
a. the purchase of a long-term investment in the common stock of another company b. the payment of cash to retire a long-term note c. the proceeds from the sale of a building d. the issuance of a long-term note to acquire land
Capitalizing interest does not increase the recorded cost of a plant asset
a. True b. False Indicate whether the statement is true or false
________ activities include those the company undertakes to make the product accessible and available to target customers
A) Line extension B) Segmentation C) Marketing research D) Channel E) New-product development
Sammy Company is considering eliminating its commercial division. The company allocates fixed costs based on division sales. If the commercial division is dropped, $100,000 of the fixed costs allocated to it could be eliminated. The impact on Sammy's operating income from eliminating the commercial division would be: Garden Farm Commercial Sales$678,000 $920,000 $692,000 Variable costs 372,900 414,000 649,800 Contribution margin 305,100 506,000 42,200 Fixed costs 247,200 335,500 252,400 Net income (loss) 57,900 170,500 (210,200)
A. $10,200 decrease B. $15,000 increase C. $57,800 increase D. $57,800 decrease E. $45,000 increase