Discuss briefly the costs of making sales on account.
What will be an ideal response?
A major cost is the possibility of encountering uncollectible accounts. Also, there is the cost of keeping records on accounts receivable. In addition, there is an implicit interest rate as measured by the money that could be earned if the firm had sold the goods for cash.
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A tangible benefit can be measured and expressed in financial terms
Indicate whether the statement is true or false
Using a single performance evaluation criterion for an investment center
a. is most effective because a manager can concentrate on a single goal. b. can result in manipulation of the performance measure. c. allows multinational investment centers' performances to be equitably compared. d. is only appropriate if the criterion is non-monetary.
When is repositioning needed?
A. when each market segment has its own preferences B. when markets become homogenous between C. when ethical issues arise in selecting segmenting dimensions D. when the direction of the marketing strategy is not clear or focused E. when customers are not viewing the brand the desired way
The last step in the preparation of the master budget is the budgeted balance sheet
Indicate whether the statement is true or false