The amount recorded for merchandise inventory includes all of the following except:
A. Freight costs paid by the seller.
B. Returns and allowances.
C. Trade discounts.
D. Purchase discounts.
E. Freight costs paid by the buyer.
Answer: A
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The phrase "relatively homogeneous collections of prospective buyers" is most descriptive of
A. ultimate consumers. B. demographic clusters. C. market segments. D. organizational buyers. E. qualified prospects.
Which of the following is NOT one of the three major global codes of ethics as indicated in the text?
a. The Caux Round Table Principles b. Kyoto Treaty c. The Organization of Economic Co-operation and Development guidelines for multinational enterprises d. The United Nations Global Impact
Which of the following is untrue of a limited partnership?
a. Limited partnerships must be formed under a state statute. b. Limited partners' surnames ordinarily cannot be used in the partnership business name. c. Partners in limited partnerships must contribute services to the partnership. d. Limited partners in a limited partnership are generally not responsible for the debts of the partnership beyond their investment.
McPherson Company is facing a $2 increase in the variable costs of producing one of its products for the upcoming year
As a result, the sales manager has made a proposal to increase the sales price of the product while increasing the advertising budget at the same time. The sales price increase will lower sales volume, but the other changes may help the company maintain its profit margin. McPherson has provided the following information regarding the current year results and the proposal made by the sales manager: Current Year Proposal Unit sales 28,000 20,000 Sales price per unit $48 $56 Variable cost per unit $34 $36 Fixed cost $76,000 $98,000 Relative to the current year, the sales manager's proposal will ________. A) decrease operating income by $8,000 B) increase contribution margin by $14,000 C) decrease the unit breakeven point D) decrease operating income by $14,000