A danger of forecasting discussed in the text is that
A. it can create legal problems for the firm if regulators discover the company is making forecasts.
B. managers may view uncertainty as black and white while ignoring important gray areas.
C. the retrospective nature of forecasting provides little information about the future.
D. in most cases, the expense of collecting the necessary data exceeds the benefit.
Answer: B
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Some of Body Shop's recent advertising has emphasized the difference between the company's principles and those of "mainstream" cosmetics companies on such issues as animal testing. As described here, Body Shop's ads illustrate positioning by:
A) competition. B) niche. C) quality/price. D) attribute/benefit. E) culture.
Which of the following is TRUE for distributor brands?
A) They sell at higher volumes than national brands and are also known as generics. B) They are usually sold at higher prices than national brands because production costs are higher. C) They are always of better quality than national brands as production is strictly monitored. D) They can generate a higher profit margin because of their lower cost structure. E) Advertising costs for distributor brands are much higher than those for national brands.
Underfoot Products uses standard costing. The following information about overhead was generated during May: Standard variable overhead rate $2 per machine hour Standard fixed overhead rate $1 per machine hour Actual variable overhead costs $390,000 Actual fixed overhead costs $175,000 Budgeted fixed overhead costs $190,000 Standard machine hours per unit produced 10 Good units produced 18,000
Actual machine hours 200,000 Using the above information provided for Underfoot Products, compute the fixed overhead variance. A) $5,000 (F) B) $5,000 (U) C) $10,000 (U) D) $10,000 (F)
The dual nature of accounting implies that every accounting transaction:
a. must affect only two accounts. b. must increase one account balance and decrease another. c. must affect at least two accounts. d. must be recorded twice—first, in the journal and then, in the ledger.