Describe two methods of accounting for by-products. What effects do these methods have on the allocation of the joint cost to the main products?
What will be an ideal response?
One method is to assign a value to the by-products equal to the net realizable value of the by-product. This method reduces the joint cost by the amount assigned to the by-products. The second method is to assign no value to the by-products, but to treat the proceeds of the sale of the by-product as other revenue. In this method there is no reduction in the joint cost.
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Managers cater to Wall Street (i.e., try to meet earnings benchmarks) for which of the following reasons?
A. To build credibility with the capital market. B. To build the external reputation of management. C. To maintain or increase the firm's stock price. D. All of these are reasons managers cite for meeting earnings benchmarks.
Patent treatment is standardized owing to
A. WIPO, TRIPS, and the Paris Union. B. domestic laws in various nations. C. the UN Commission on Patents. D. the WTO.
__________ is a business management process that combines rigorous analytical tools with a well-defined infrastructure and leadership from the top in order to solve problems and optimize processes.
Fill in the blank(s) with the appropriate word(s).
Hammer bought a tool set from Weekend Projects, Inc and signed a consumer credit contract promising to pay for the tool set in 12 monthly installments. Weekend promptly negotiated the instrument to its affiliate Easy Finance Co in exchange for a
discounted payment. Easy Finance gave value for the instrument, in good faith, and without knowledge of any defects or claims against the instrument. The tool set was defective and therefore Hammer stopped making the monthly payments. Easy Finance sues Hammer for the balance due on the instrument. Can Hammer raise this personal defense (breach of implied warranty of merchantability) against Easy Finance? Discuss.