Insurance to cover costs associated with obsolete, stolen, deteriorated, or spoiled inventory falls under ______.
a. ordering costs
b. setup costs
c. stock-out costs
d. holding costs
d. holding costs
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Some of the CDs produced by a manufacturer are defective. From the production line, 4 CDs are selected and inspected. How many sample points exist in this experiment?
A. 4 B. 8 C. 16 D. 256
Trendables, a manufacturer of electronic jewelry had the following results from its Subunit W:
Requirements:
1. Complete the performance evaluation report for this subunit (round to two decimal places).
2. Based on the data presented and your knowledge of the company, what type of responsibility center is this subunit?
3. Which items should be investigated if management's decision criteria is to investigate all variances equal to or exceeding $10,000 and 10% (both criteria must be met)?
4. Is it possible that the variances are due to a higher-than-expected sales volume?
5. Which balanced scorecard perspective is being addressed by this performance report? Is it a lead or lag indicator?
Treasury stock should be reported
a. as a current asset only if it will be sold within the next year or the operating cycle, whichever is longer. b. as a current asset only if it will be sold within the next year or the operating cycle, whichever is shorter. c. in the Investments and Funds section of the balance sheet. d. as a deduction from total stockholders' equity on the balance sheet.
A consideration need not be of legal value to be enforceable
Indicate whether the statement is true or false