DPGR cannot include the cost of an embedded service that is part of in the sale of a manufactured product
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: It can if the product is not sold without the service and the service is not separately bargained for. Even if these conditions are not met, the embedded service can be DPGR if it meets the 5% de minimis test.
You might also like to view...
When duties cannot be segregated, the most important internal control procedure is
a. supervision b. independent verification c. access controls d. accounting records
Clay Earth Company sells ceramic pottery at a wholesale price of $5 per unit. The variable cost of manufacture is $2.50 per unit. The fixed costs are $6200 per month. It sold 5700 units during this month. Calculate Clay Earth's operating income (loss) for this month.
A) $22,300 B) $8050 C) ($8050) D) ($6200)
Most of the protections provided by the U.S. Constitution and its amendments apply only to governmental action, which is referred to as:
a. due process. b. state action. c. equal protection. d. separation of power.
For a ratification to be effective, the principal must:
A) have knowledge of all material facts concerning the transaction. B) communicate her intent to ratify to the third party. C) renegotiate the contract with the third party. D) All of these are correct.