A corporation usually distributes all of its earnings to stockholders at the end of the fiscal year
Indicate whether the statement is true or false
F
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Which of the following costs are relatively easier to allocate using volume–based cost systems and drivers?
a. Product design costs b. Factory rent costs c. Direct material costs d. Setup costs
The Supreme Court has discouraged the use of arbitration to resolve disputes involving securities firms due to persistent bias in favor of the industry and against clients
a. True b. False Indicate whether the statement is true or false
What are the savings of marginal bad debts under the proposed plan?
Fizzy Animators, Inc. currently makes all sales on credit and offers no cash discount. The firm is considering a 3 percent cash discount for payment within 10 days. The firm's current average collection period is 90 days, sales are 400 films per year, selling price is $25,000 per film, variable cost per film is $18,750, and the average cost per film is $21,000. The firm expects that the change in credit terms will result in a minor increase in sales of 10 films per year, that 75 percent of the sales will take the discount, and the average collection period will drop to 30 days. The firm's bad debt expense is expected to become negligible under the proposed plan. The bad debt expense is currently 0.5 percent of sales. The firm's required return on equal-risk investments is 20 percent. (Assume a 360-day year.) A) $500,000 B) $50,000 C) $10,000 D) $5,000
The Safety Committee, a temporary team, was established to make the workplace a safer place. Members of the committee still work in their departments full-time, but meet twice a month for a few hours as a committee. This is an example of a ________.
a. common purpose b. horizontal design c. vertical design d. multipurpose design e. modular design