When a company allows a foreign firm to pay it a fee to make or distribute the first company's product or service it is called
A. outsourcing.
B. franchising.
C. licensing.
D. countertrading.
E. a joint venture.
C. licensing.
In licensing, a company allows a foreign company to pay it a fee to make or distribute the first company's product or service.
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Indicate whether the statement is true or false
A company's accountant capitalized a payment that should have been recorded as a revenue expenditure. How will this error affect the company's financial statements?
A) Net income will be understated. B) Expenses will be overstated. C) Assets will be overstated. D) Liabilities will be overstated.
Which of the following will result in an unfavorable direct labor cost variance?
A) when actual direct labor hours exceed standard direct labor hours B) when actual direct labor hours are less than standard direct labor hours C) when the actual direct labor cost per hour exceeds the standard direct labor cost per hour D) when the actual direct labor cost per hour is less than the standard direct labor cost per hour
What happens when a product is scarce?
A) Demand declines to zero. B) Sellers can charge more for it. C) Sellers must charge less for it. D) Buyers will expect to pay less for it. E) Factors of production are meeting demand.