Inventory cost reduction will result in?
a. Profit increase
b. Profit increase, but only if stockout costs are avoided
c. Profit decrease
d. Profit decrease, but only if stockout costs are avoided
b. Profit increase, but only if stockout costs are avoided
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One of the benefits of strong brand equity is more elastic consumer response to price increases
Indicate whether the statement is true or false
Why do movie theaters sell tickets for an afternoon showing of a movie at a lower price than the 7 p.m. showing of the same movie?
A. To deal with the intangible characteristic of services B. To minimize inventory losses C. To deal with the incompatibility characteristic of services D. To deal with the perishability of services E. To make sure the service offered is consistent
Generally accepted accounting principles in the United States require firms to
a. capitalize and amortize all research and development costs over the future expected benefit period. b. capitalize and amortize all research and development costs over a period no greater than 5 years. c. capitalize and amortize all research and development costs over a period no greater than 10 years. d. expense all research and development costs in the period incurred. e. None of these answer choices is correct.
Summerlin Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. The company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units. What is the direct materials quantity variance?
A. $400 unfavorable. B. $2,500 unfavorable. C. $450 unfavorable. D. $2,950 unfavorable. E. $2,550 unfavorable.