Joe Bergerson makes and sells maple racks for cooling cakes and cookies. Joe knows that it costs $15 to make one rack, and he wants to earn a 25 percent profit on each rack. Which approach to pricing is Joe most likely to use?
A) demand-based pricing
B) target costing
C) cost-plus pricing
D) yield management pricing
E) value pricing
C
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Plant assets are depreciated because
a. the accrual basis of accounting requires matching of costs to revenues. b. some plant assets last longer than others. c. useful lives cannot be reasonably estimated. d. the replacement cost of plant assets may fluctuate over time.
When processing a check, Platinum Bank encodes information, such as the amount of the check, on the item. Platinum thereby warrants to any subsequent bank or payor
A. the item has been returned to the drawer. B. nothing. C. the check has been processed manually. D. the encoded information is correct.
When writing to a customer about a problem with an order, you should ________
A) use the direct pattern if the message has some good-news elements B) use the indirect pattern if the message has some good-news elements C) always use the direct pattern D) always use the indirect pattern
If a contractor's bid contains a mistake in addition when totaling the estimated costs, the contract may not be enforceable
Indicate whether the statement is true or false