The difference between manufacturing and service industry is that ______
a. demand cannot be short term in service industry
b. demand cannot be seasonal in manufacturing
c. services cannot be inventoried to satisfy demand
d. demand cannot be long term in service industry
c. services cannot be inventoried to satisfy demand
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Factoring involves selling accounts receivables for:
a. more than their face value b. less than their face value c. their present value d. their par value e. their depreciated value
Goods that have been started in the manufacturing process but are not yet complete are included in the ________
A) Finished Goods Inventory account B) Work-in-Process Inventory account C) Raw Materials Inventory account D) Cost of Goods Sold account
ABC Appliance offers a warranty requiring an annual fee. The warranty may be purchased at the time of sale or at any time within the first year after the appliance was purchased
The warranty fee after the date of purchase is twice the time-of-purchase fee. When asked why the fee was higher after the date of purchase, ABC's president said, "Buying a warranty is voluntary. We've noted that those who buy the warranty after the purchase date have a greater need for service." Charging the same rate or a lower rate after the date of purchase would expose ABC to what problem that also impacts private insurers? A) excessive premiums B) reduced claims C) bad investments D) adverse selection
If a fast food restaurant has hamburger patties in the freezer, these would be classified as
________ inventory. A) finished goods B) maintenance, repair, and operating C) raw materials D) work in progress