When preparing the operating activities section of the statement of cash flows using the indirect method, an increase in wages payable is subtracted from net income.

Answer the following statement true (T) or false (F)


False

Business

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Most countries require some form of absorption costing for external reports.

Answer the following statement true (T) or false (F)

Business

Explain impulse products. Identify two challenges marketers may have regarding impulse products

What will be an ideal response?

Business

Piersall Company makes a variety of paper products. One product is 20 lb copier paper, packaged 5,000 sheets to a box. One box normally sells for $18. A large bank offered to purchase 3,000 boxes at $14 per box. Costs per box are as follows: Direct materials $8 Direct labor 3 Variable overhead 1 Fixed overhead 5 No variable marketing costs would be incurred on the order. The company is operating

significantly below the maximum productive capacity. No fixed costs are avoidable. Should Piersall accepts the order? A) Yes, income will increase by $6,000 B) Yes, income will increase by $9,000 C) No, income will decrease by $3,000 D) No, income will decrease by $6,000 E) It doesn't matter, there will be no impact on income

Business

Which of the following is not one of the characteristics of reward and incentive systems?

A. They represent an effective control mechanism. B. They motivate high levels of individual and collective task performance. C. They represent a poor means of influencing the culture of an organization. D. They focus efforts on high priority tasks.

Business