When the cost-adjusted-to-market method is used to account for a long-term investment in stock of another company, the carrying value of the investment is directly affected by
a. the dividend distributions of the investee.
b. the earnings and dividend distributions of the investee.
c. the earnings of the investee.
d. neither the earnings nor the dividends of the investee.
D
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If a company is operating beyond its break-even point, sale of one more unit of product increases the company's profit by the amount of the unit contribution margin.
Answer the following statement true (T) or false (F)
Opportunities to differentiate a company's product offering
A. are most frequently attached to a company's manufacturing expertise and to its ability to achieve economies of scale in production. B. are most reliably found in the R&D portion of the value chain. C. are typically located in the sales and marketing portion of the value chain. D. usually are tied to product quality and customer service. E. can exist in activities all along an industry's value chain.
Termination by addition occurs when:
A) Scope creep adds too many activities to the project that prevent it from being completed on time or within budget. B) The project is so successful that it becomes institutionalized. C) A new project is added to the organization and it commands all of the resources for the original project. D) New members join the project team once the project has begun and their skills are insufficient to successfully complete the project.
Creditors of the beneficiary of a spendthrift trust can attach the income of the trust before or after the beneficiary receives it, but they cannot reach the trust fund itself
a. True b. False Indicate whether the statement is true or false