In the lawsuit between P&G and BT, who won? Explain how both counterparties might have lost
What will be an ideal response?
The lawsuit between P&G and BT was settled out of court with both sides claiming victory. BT claimed victory because P&G agreed to pay BT $35 million of the nearly $200 million it owed, and it assigned to BT the benefits of another disputed derivative investment that was valued between $5 million and $14 million. P&G claimed victory because it recovered 83% of its total losses. Regardless, it is clear that the victory was costly to both sides because of the damaged reputations the companies suffered in the financial markets.
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The use of another CPA firm by an audit firm to perform part of the engagement on a client's subsidiary will require the audit firm to do which of the following?
a. Merge with the other CPA firm. b. Perform a peer review on the other CPA firm. c. Ensure the independence of the other CPA firm of the client. d. List the other firm in the footnotes to the client's financial statements.
What are the distinctive features of a focused low-cost strategy? How does it differ from a low-cost leadership strategy?
What will be an ideal response?
According to executive coaches Richard Maxell and Robert Dickman, a story is all of the following EXCEPT
a. a fact. b. wrapped in an emotion. c. compelling us to take an action. d. not transformative.
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted ActivityActivity Cost PoolBudgeted CostProduct AProduct BProduct CActivity 1$70,000 6,000 9,000 20,000 Activity 2$45,000 7,000 15,000 8,000 Activity 3$82,000 2,500 1,000 1,625 Which of the following statements is true regarding this company's activity rates?
A. The activity rate under the activity-based costing system for Activity 2 is $2.00. B. The activity rate under the activity-based costing system for Activity 2 is $16.00. C. The activity rate under the activity-based costing system for Activity 2 is $1.50. D. The activity rate under the activity-based costing system for Activity 2 is $2.81. E. The activity rate under the activity-based costing system for Activity 2 is $19.50.