Depreciation on a personal computer used in the marketing department of a manufacturing company would be classified as:
A. a product cost that is fixed with respect to the company's output.
B. a product cost that is variable with respect to the company's output.
C. a period cost that is variable with respect to the company's output.
D. a period cost that is fixed with respect to the company's output.
Answer: D
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When companies adopt an indirect involvement channel they have all of the following activities except:
A) utilize independent agents. B) use distributors. C) utilize retailers. D) establish their own sales force. E) utilize those who have network of stores.
Which of the following is an asset that represents distinctive identifications of a product or service?
A) license B) copyright C) franchise D) trademark
When applying the lower-of-cost-or-market rule to inventory valuation, market generally means
a. original cost, less physical deterioration. b. replacement cost. c. original cost. d. resale value.
The overall objective of financial reporting is to provide information
a. that is useful for decision making. b. about an enterprise's assets, liabilities, and owners' equity. c. about an enterprise's financial performance during a period. d. that allows owners to assess management's performance.