Which integrated approach helps to understand the interactions of an organization’s components in a better manner?
a. Two-way approach
b. Contingency approach
c. Systems approach
d. Uni-directional approach
b. Contingency approach
The contingency approach can help in better understanding the interactions of an organization’s components.
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Trashbin is a waste disposal company. Explain the effect the following actions of the management of Trashbin Company might have in managing earnings: 1 . Management assigned unsupported and inflated salvage values and extended the useful lives of
company garbage trucks. 2 . Management assigned arbitrary salvage values to other assets that previously had not salvage value. 3 . Management did not record expenses required to write off the costs of unsuccessful and abandoned landfill development projects. 4 . Management recorded inflated environmental liabilities in connection with acquisitions of other companies. 5 . Management improperly capitalized a variety of expenses. 6 . Management did not establish sufficient liabilities for income taxes and other expenses.
Whitney Company treats each division as a profit center and expects a 20 percent profit on its total production costs. Division A produces a part that it sells externally for $19.00. It also supplies this part to other internal divisions. Its production cost for the part is $13.70. What should be the transfer price for the part using the cost-plus approach?
A) $16.35 B) $16.44 C) $19.00 D) $22.80
A prefabricated steel storage shed is purchased for $20,000 cash and a $80,000 interest-bearing note payable over a 5-year period at an annual interest rate of 10 percent per annum. The cost to be recorded as an asset (in addition to the $100,000 purchase price) should include all of the following except
a. shipping and handling charges. b. insurance while in transit. c. interest on the note payable. d. reassembly and installation costs. e. All of these answer choices are costs to be recorded as assets.
Alpha Communications, a partnership, publishes consumer periodicals, including Science Today. Beta Publications, also a partnership, publishes professional periodicals, including Technology Review. Alpha and Beta agree to pool their resources in a one-time deal to print and market a book, Unlimited Future. In contracting with Gamma Printing Supplies, Inc., for paper to print the book, Alpha commits fraud. In contracting with Delta Literary Agency for articles to use in Technology Review, Beta commits fraud. Gamma and Delta file suits against Alpha and Beta. What type of business organization has Alpha and Beta formed? To whom, if anyone, is Alpha liable? To whom, if anyone, is Beta liable?
What will be an ideal response?