Describe how efforts aimed at enhancing a company’s productivity may actually end up being detrimental to the company.
What will be an ideal response?
A successful answer will describe how pursuing productivity gains can lead to incentives that may have poor results for the company. For example, reducing materials costs (inputs) by buying from a cheaper supplier may result in a poor-quality product and ultimately harm the company.
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Under the periodic inventory system, a physical inventory is taken to determine the cost of the inventory on hand and the cost of the merchandise sold
Indicate whether the statement is true or false
In limited decision making, consumers _____
a. use each purchase process step, but do not spend much time on each step b. spend much time on information search c. are unwilling to spend time on shopping d. view products to have high perceived risk
A busy mom stops at a 7-Eleven store on the way home from work to purchase some bread, milk, and ice cream. What primary economic need is being satisfied by the 7-Eleven?
A. efficiency in operation B. economy of purchase C. dependability in use D. convenience
In its first year of business, Borden Corporation had sales of $2,040,000 and cost of goods sold of $1,220,000. Borden expects returns in the following year to equal 7% of sales. The adjusting entry or entries to record the expected sales returns is (are):
A.
| Accounts Receivable | 2,040,000? | |
| Sales | 2,040,000? |
B.
| Sales Returns and Allowances | 142,800? | |
| Sales Refund Payable | 142,800? | |
| Inventory Returns Estimated | 85,400? | |
| Cost of goods sold | 85,400? |
C.
| Sales returns and allowances | 142,800? | |
| Sales | 142,800? | |
| Cost of Goods Sold | 85,400? | |
| Inventory Returns Estimated | 85,400? |
D.
| Sales | 2,040,000? | |
| Sales Refund Payable | 142,800? | |
| Accounts receivable | 1,897,200? |
E.
| Sales Refund Payable | 142,800? | |
| Accounts receivable | 142,800? |