When prices are rising, which method of inventory, if any, will result in the lowest relative net cash outflow (including the effects of taxes, if any)?
A. Weighted average
B. FIFO.
C. LIFO.
D. None of these; inventory methods cannot affect cash flows.
Answer: C
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Campus Bus Service entered into a contract with Smith Bus Company to purchase 10 buses. One week before Campus Bus was scheduled to receive the buses, a fire destroyed Smith's warehouse and the buses inside. As a result, Campus Bus had to purchase its buses at a slightly higher cost from another manufacturer. Campus Bus sues Smith Bus for damages for breach of contract under these circumstances. Assume Campus Bus did not bear the risk of loss of the goods under the contract. In this scenario, ________.
A. Smith Bus should not be excused from performance because it did not act in good faith B. Smith Bus can exercise its right of anticipatory repudiation C. Smith Bus should be excused from performance under the clause for the rights on improper delivery D. Smith Bus should be excused from performance under the test of commercial impracticability
The following information is available about the Appliance Division of Rainier Company.Rainier requires a return of 9% from all divisions. Appliance Division Earnings from Operations$18,462,000 Appliance Division Sales$112,600,000 Appliance Division Identifiable Assets$173,700,000 Required:a. Compute the ROI for the Appliance Division.b. Compute the residual income for the Appliance Division.
What will be an ideal response?
Flanders Bar and Grill orders cleaning supply kits using the EOQ model. The restaurant estimates that it uses 525 kits per year. The purchase price per kit is $12 with an estimated carrying cost rate of 15%. The cost to place an order from the kit supplier is $10. What is the average inventory level that the restaurant should expect?
a. 212.5 b. 76.4 c. 525 d. 38.2
Active-voice verbs? ______
A) ?should be avoided in business writing B) ?direct the action of the verb toward the subject C) require at least one helping verb D) ?direct the action of the subject toward the object of a verb