Consider the following two activities: (1 ) performing warranty work, cost: $60,000. The warranty cost of the most efficient competitor is $10,000. (2 ) Purchasing components, cost: $100,000 (5,000 purchase orders). A study reveals that the most efficient level would use 2,500 purchase orders and entail a cost of $55,000. What is the nonvalue-added cost?
A) $55,000
B) $60,000
C) $45,000
D) $100,000
C
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Cash dividends become a liability to a corporation on the date of record
a. True b. False Indicate whether the statement is true or false
Intensive distribution relies on only some of the intermediaries willing to carry a particular product
Indicate whether the statement is true or false
The report of a CPA on a review of the financial statements of a nonpublic entity should not include a statement that:
A. a review consists principally of inquiries of company personnel and analytical procedures applied to financial data. B. management is responsible for the preparation and fair presentation of the financials in accordance with GAAP. C. the CPA is not aware of any material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles. D. the review was performed in accordance with generally accepted auditing standards.
Assume the gross amount of an invoice is $1,000 and a trade discount of 25% is allowed. The dollar amount of the trade discount is
a. $1,000; b. $750; c. $250; d. $25; e. none of these