Since cost is a reliable measure, the cost principle holds that the accounting records should continue reporting an asset at its historical cost over its useful life
Indicate whether the statement is true or false
TRUE
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Procter & Gamble's introduction of All-Temperature Cheer laundry detergent in Japan was a flop at first
The problem was that Japanese women wash clothes in cold water–either tap water or leftover bath water–so they don't care about all-temperature washing (which is a big selling point in the United States). Also, Cheer was first introduced in Japan at a time when the market for fabric softeners in Japan was rapidly expanding. However, when Japanese housewives added lots of fabric softener to the water, Cheer didn't produce many suds (Americans don't use as much fabric softener). P&G reformulated the product so it wouldn't be affected by fabric softeners, and ads for Cheer in Japan pledged superior cleaning in cold water, not all temperatures. Which of the following might have helped P&G avoid the initial problems with Cheer? A) Maslow's hierarchy B) high vs. low context culture C) diffusion of innovation D) self-reference criterion E) polycentric orientation
What are the criteria for evaluating a foreign investment proposal?
What will be an ideal response?
To realize improvements in ease of production, a company should
A. keep production methods constant for employee continuity. B. increase the average number of customer queries solved per day. C. create an additional product as an adjunct to the main product. D. design products with fewer component parts. E. decrease the number of employees performing a particular task.
With the contribution-margin approach to marketing cost analysis,
A. common costs that are hard to allocate are ignored. B. all costs are allocated to products, customers, or other categories. C. variable costs are treated as common costs. D. fixed costs are allocated based on the profit contribution to the firm. E. None of these answers is correct.