Explain vendor exploitation
Once the client firm has divested itself of specific assets it becomes dependent on the vendor. The vendor may exploit this dependency by raising service rates to an exorbitant level. As the client's IT needs develop over time beyond the original contract terms, it runs the risk that new or incremental services will be negotiated at a premium. This dependency may threaten the client's long term flexibility, agility and competitiveness and result in even greater vendor dependency.
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____________________ are used in the manufacturing process but do not become a major part of the finished product
Fill in the blank(s) with correct word
Tomasini Corporation has provided the following data from its activity-based costing accounting system: Supervisory wages$660,000Factory supplies$280,000Distribution of Resource Consumption across Activity Cost Pools:Activity Cost PoolsBatch ProcessingUnit ProcessingOtherTotalSupervisory wages20%70%10%100%Factory supplies45%35%20%100%The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. How much supervisory wages and factory supplies cost would NOT be assigned to products using the activity-based costing system?
A. $122,000 B. $0 C. $660,000 D. $280,000
A warranty of merchantability means that the buyer has a right to expect that the good performs as expected
Indicate whether the statement is true or false
Sean and Martha are both over age 65 and Martha is considered blind by tax law standards. Their total income in 2018 from part-time jobs and interest income from a bank savings account is $80,000. Their itemized deductions are $25,000.Required: Compute their taxable income.
What will be an ideal response?