Which of the following statements is(are) true?(A) Divisional income statements do not include allocated common costs.(B) The gross margin ratio is computed by dividing operating income by sales.
A. Only A is true.
B. Only B is true.
C. Both of these are true.
D. Neither of these is true.
Answer: D
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If the auditor concludes that there may be a going-concern problem with the client, which of the following is the best course of action for the auditor to follow?
a. Issue a qualified opinion. b. Identify and assess management's plan to overcome the situation. c. Chart the negative trends as an addendum to the audit report. d. Increase fees to cover the probable exposure.
Lynch Corporation bought a piece of machinery. Selected data is presented below: Useful life 8 years Yearly net cash inflow $48,000 Salvage value - 0 - Internal rate of return 16% Cost of capital 13% Present value tables or a financial calculator are required. The initial cost of the machinery was
a. $201,496 b. $208,493 c. $215,390 d. $230,342
Burke Company has 160 employees, 88 of whom are in Department 1 and 72 in Department 2. The company expects to incur $166,000 of office supplies costs during the current year. How much of this cost should be allocated to Department 1?
What will be an ideal response?
Your textbook discusses the ________created in the supply chain of supermarkets through their _________ practices?
a. Power/knowledge b. Conflict/organizational c. Conflict/competitive d. Both b and c