The Leontief paradox questioned the validity of the theory of
a. comparative advantage.
b. factor endowments.
c. overlapping demands.
d. absolute advantage.
b. factor endowments.
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Answer the following statements true (T) or false (F)
1. The process of fitting the organization to its environment is called incidental design. 2. The founder of McDonald's, Ray Kroc, intended that a Big Mac should taste the same anywhere, and accordingly, the company has many specific procedures, making it a mechanistic organization. 3. Companies that must respond to fast-changing customer tastes often favor a mechanistic structure to an organic one. 4. Lawrence and Lorsch's term for the tendency of an organization's parts to disperse and fragment is dissolution.
Exhibit 22-4 Barbara Company's year-end December 31, 2016, financial statements contained the following errors: ? · Ending inventory on December 31, 2016, was overstated by $75,000. · Depreciation expense was understated by $7,000. · A two-year insurance policy for 2016 and 2017 in the amount of $14,000 was entirely expensed in 2016. · Investments in common stock of other companies were
sold in 2016 at a gain of $10,000, but the sale was not recorded until 2017. ? Refer to Exhibit 22-4. What is the effect of the above errors on 2016 net income? A) Net income is understated by $65,000. B) Net income is overstated by $92,000. C) Net income is overstated by $58,000. D) Net income is overstated by $65,000.
Which of the following is a prepurchase service offered by retailers?
A) accepting orders over the telephone B) shipping the product C) delivery to the customer's doorstep D) general information E) interior decoration of the retail outlet
The activity-based costing system improves the allocation of ________.
A) indirect manufacturing costs B) direct labor C) direct materials D) sales commissions