The costs of organizing a corporation include legal fees, fees paid to the state of incorporation, fees paid to promoters, and the costs of meetings for organizing the promoters. These costs are said to benefit the corporation for the entity's entire life. These costs should be
a. capitalized and never amortized.
b. capitalized and amortized over 40 years.
c. capitalized and amortized over 5 years.
d. expensed as incurred.
Answer: d. expensed as incurred.
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If Frito-Lay (which has products in almost all the submarkets for snack foods) were to try to increase its share of one of its markets, it would be pursuing a ________ opportunity.
A. product development B. diversification C. market development D. mass marketing E. market penetration
Which of the following amounts of a flexible budget remains constant, within the specified relevant range, when the sales volume changes?
A) total contribution margin B) total fixed costs C) total variable costs D) total sales revenue
Which of the following statements is true?
A. Training should include on-the-job observation, but classroom and web-based learning is rarely needed. B. Good salespeople are born with inherent selling traits and need little training. C. Selling skills are best learned with interactive web training programs. D. All salespeople need training. E. New salespeople should be immediately sent out on the road to get acquainted with the firm's best customers.
John's friend just gave him a pair of concert tickets to see his favorite rock group perform this
weekend. Each ticket sells for $25. John's boss asked him to work overtime the same weekend and at the same time as the concert. John currently makes $10.00 an hour and his overtime pay for the four hours his boss asked him to work is double the hourly rate. If John decides to go to the concert, his opportunity cost is A) $50.00 for the two tickets. B) $50.00 because that is what his friend paid for the tickets. C) $40.00 in lost pay. D) $80.00 in lost pay. E) nothing because the concert tickets were free for John.