If costs are allocated on a somewhat arbitrary base, what purpose does computing product costs have?
What will be an ideal response?
The cost of conducting a special study every time we need to know the cost of an item is very expensive. Although the product costs determined using allocations may not be "right," they are often "good enough." There needs to be a balance between the potential distortion in costs and the cost of determining the product cost through special studies.
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How does competition influence market planning and budgeting?
A) Market planning and budgeting must be prepared in light of the competitive level in the market. B) Planning and budgeting is not affected for companies with minor positions in foreign markets competing against entrenched companies in the same market. C) Competitive moves are not important as a variable in international market planning and budgeting. D) The more competitive a target market is, the easier it is to prepare market planning and budgeting.
Determining customer loyalty would be a measure of performance under which perspective of the balanced scorecard?
A) Internal business B) Customer C) Financial D) Learning and growth
Enter the number of the following terms on the line next to the appropriate definition of each.1.The component of an accounting system that makes information from an accounting system available to users.Accounting information system 2.The means of collecting and processing data from transactions and events, organizing them into useful reports, and communicating results to decision makers.Purchases journal?3.A record of the separate accounts of each supplier that supports its general ledger controlling account.Cash receipts journal?4.The component of an accounting system that keeps data in a form accessible to information processors.Control principle?5.The special journal used to record all receipts of cash.Relevance principle?6.The special journal that is used to record all
cash payments.Information storage?7.The component of an accounting system that takes source document information and transfers it to the information processor.Cash payments journal?8.An information system principle that prescribes that an accounting system have methods and procedures allowing managers to control and monitor business activities.Accounts payable ledger?9.The special journal used to record all purchases made on account.Output devices?10.An information system principle requiring that an accounting system report useful, understandable, and timely information for decision making.Input devices? What will be an ideal response?
Mrs. Scott loaned $100,000 to her daughter Evelyn, who agreed to pay her mother $3,000 annual interest on the debt. This loan is an example of a/an:
A. Related party transaction B. Prohibited transaction C. Arm's length transaction D. Public market transaction