Costs that are capitalized as inventory when they are incurred are called:
A. Period costs.
B. Administrative costs.
C. General costs.
D. Fixed costs.
E. Product costs.
Answer: E
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Under international accounting standards, if a sale-leaseback results in an operating lease then
a. any profit on the original sale is deferred and recognized over the life of the subsequent lease. b. any profit on the original sale is not recognized in the financial statements. c. any profit on the original sale is deferred and recognized over the life of the leased asset. d. assuming the original sale was clearly at fair value, any profit is recognized immediately even when the leaseback results in an operating lease.
In 1931, the concept of stakeholder theory was first presented by A.A. Berle who suggested that managers should be guardians of the investments of the organization. The expansion of this custodianship to include the wider community was developed by _________ and is the genesis of current stakeholder theory.
a. Edward Freeman b. E. Merrick Dodd, Jr. c. Milton Friedman d. Archie Carroll
Which of the following are reasons a company may outsource its operations?
a. to access specialized skills b. to have greater control over its operations c. to comply with foreign government regulations d. to avoid trade barriers
Which of the following is true of inquiry?
A. It focuses only on a particular incident. B. It tries to resolve an entire dispute. C. It involves mediators who offer good offices. D. It involves conciliation among mediators.