One of the reasons used to explain why customers evaluate goods and services differently is:
A. The increased customer autonomy in the pricing of goods
B. The greater degree of customer empowerment used to sell services
C. That customers often have limited reference prices for services
D. Services and goods influence opportunity costs differently
E. The cost of maintaining inventory
Answer: C
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When a bond issue is retired early, the amount of unamortized discount or premium is not considered in the calculation of a gain or loss
a. True b. False Indicate whether the statement is true or false
Mini-Case Question. In which of the following situations is Dow using a mixed channel system?
A) Instead of using salespeople, Dow uses manufacturer's representatives and brokers, and pays them a commission on every product sold. B) Retailers take over Dow's sales and point-of-purchase distribution in consumer markets, but distributors or dealers assume this responsibility in B2B markets. C) Dow uses primarily direct mail and catalog sales to market its products, but also uses telemarketing to target large customers. D) Dow distributes its products directly to customers in the innovation/technology segment but finds that use of wholesale distributors and dealers are more efficient in reaching the service quality segment. E) Dow uses manufacturers' representatives, sales agents, and brokers who assume the selling responsibility for the business and receive a commission when a sale occurs, but do not take title to the products.
Answer the following statements true (T) or false (F)
The Trueblood report noted that, during the short run, cash flows are a better predictor of cash-generating power than are earnings.
The lower-of-cost-or-market basis for inventory valuation is a conservative accounting policy because
a. it recognizes losses from decreases in market value before the firm sells goods. b. it does not record gains from increases in market value before a sale takes place. c. it reports inventories on the balance sheet at amounts that are never greater, but may be less than acquisition cost. d. all of the above e. none of the above