Olive Corp. currently makes 20,000 subcomponents a year in one of its factories. The unit costs to produce are: Per unitDirect materials $12Direct labor 8Variable manufacturing overhead 12Fixed manufacturing overhead 8Total unit cost $40An outside supplier has offered to provide Olive Corp. with the 20,000 subcomponents at a $36 per unit price. Fixed overhead is not avoidable. If Olive Corp. accepts the outside offer, what will be the effect on short-term profits?
A. $80,000 decrease
B. $160,000 decrease
C. $160,000 increase
D. $320,000 increase
Answer: A
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Parton Corporation acquires 30% of the outstanding voting common shares of the Investee Corporation for $600,000 . Parton Corporation acquires the investment in Import Corporation by buying previously issued shares of Import Corporation from other investors. When Parton Corporation acquired 30% of Import Corporation's common shares for $600,000, Import Corporation's total shareholders' equity was
$1.5 million. Parton Corporation's cost exceeds the carrying value of the net assets acquired by $150,000 [ $600,000 - (0.30 x $1,500,000)]. Parton Corporation may pay this premium because a. the fair values of Import's net assets differ from their carrying values, only. b. of unrecorded assets (for example, trade secrets), only. c. the fair values of Import's net assets differ from their carrying values and/or unrecorded assets (for example, trade secrets). d. the liquidation values of Import's net assets differ from their carrying values, only. e. of unrecorded liabilities (for example, contingent liabilities), only.
Supply chain managers are responsible for all of the following EXCEPT:
A. the management of information that flows through the supply chain B. auditing the accounting practices of suppliers to ensure compliance with ABC accounting C. coordinating the relationships between the company and its external partners D. coordinating customer service activities E. coordinating the sourcing and procurement of raw materials
The Supreme Court was created:
a. by the Constitution b. by the Declaration of Independence c. by England when the U.S. was a colony; it was retained when the nation was formed d. by the Bill of Rights e. by Congress in 1832
Briefly identify and discuss four types of documents that would be helpful in determining future system requirements
What will be an ideal response?