Which of the following will be the best measure of performance while deciding to drop a product line?

a. Residual income
b. Sales price variances
c. Segment margin
d. Return on investment


c

Business

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The four categories of product quality costs are

a. external failure, internal failure, prevention, and carrying. b. external failure, internal failure, prevention, and appraisal. c. external failure, internal failure, training, and appraisal. d. warranty, product liability, training, and appraisal.

Business

At the end of the current year, using the aging of receivable method, management estimated that $15,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $375. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

A.

Bad Debts Expense15,375 
Allowance for Doubtful Accounts 15,375

B.
Bad Debts Expense16,125 
Allowance for Doubtful Accounts 16,125

C.
Accounts Receivable15,750 
Bad Debts Expense375 
Sales 16,125

D.
Accounts Receivable16,125 
Allowance for Doubtful Accounts 16,125

E.
Bad Debts Expense15,750 
Allowance for Doubtful Accounts 15,750

Business

A new entrant in a market dominated by established players introduces itself with copycat products of another competitor. Would this strategy work in the long-term for the firm? Justify your answer.

What will be an ideal response?

Business

In a ____________________ market investors expect share values to go up, and in a ____________________ market investors expect share values to go down.

Fill in the blank(s) with the appropriate word(s).

Business