In the basic economic order quantity (EOQ) model, the annual ordering cost and the annual holding cost are always equal
a. True
b. False
Indicate whether the statement is true or false
True
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Royal Company purchased a dump truck at the beginning of 2014 at a cost of $60,000 . The truck had an estimated life of 6 years and an estimated residual value of $24,000 . On January 1, 2016, the company made major repairs of $20,000 to the truck that extended the life 1 year. Thus, starting with 2016, the truck has a remaining life of 5 years and a new salvage value of $8,000 . Royal uses the
straight-line depreciation method. What amount should be recorded as depreciation expense each year starting in 2016? a. $6,000 b. $12,000 c. $13,600 d. $14,400
On June 11, Nathan, Inc accepted a $8,000, 7%, 60-day note from a customer. On June 26, the company discounted the note at the bank at 10%. The proceeds amounted to
A) $8,101.17 B) $7,992.16 C) $8,093.33 D) $8,000.00
Royer Corporation engaged in this transaction: Purchased treasury stock with cash. Indicate which section, if any, the above transaction would appear in, or relate to, on a statement of cash flows
a. Financing activities section b. Investing activities section c. Does not represent a cash flow d. Operating activities section
Business analytics is a key tool to analyze big data so that firms can customize their strategic focus on customers. What is not a big risk in data analysis?
a. Loss of anonymity b. Data patterns versus reality c. Discrimination-based customer segmentation d. Growth in market share and sales