Developing consolidated categories is a subjective decision.
Answer the following statement true (T) or false (F)
True
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A publisher makes an oral deal with an author, where the author agrees to write a new "Introduction to Marketing" book. They agree that the book is due in two years. In this scenario, the contract is most likely to be ________.
A. legally enforceable B. rescinded by a court C. illegal D. unenforceable
A cross-sectional analysis of revenue recorded across multiple sales location is a form of what type of testing?
a. Trend analysis b. Common size analysis c. Ratio analysis d. Regression analysis
The FASB and the IASB are reconsidering the role of uncertainty, or probability, in the definition, recognition, and measurement of liabilities. Existing recognition criteria include a probable future sacrifice of resources; one issue involves the minimum probability level to warrant recognition of an uncertain obligation as a liability. IFRS imply a minimum probability level of greater than
_____ percent. a. 50 b. 60 c. 70 d. 80 e. 90
Sierra Semiconductors produces 100,000 high-tech computer chips per month. Each chip uses a component that Sierra makes in-house. The variable costs to make the component are $1.30 per unit, and the fixed costs are $1,100,000 per month. The company has been approached by a foreign producer who can supply the component, within acceptable quality standards, for $1.20 each. If the company chooses to outsource, fixed costs can be reduced by 40%. There are no other uses for the facilities currently employed in making the component. What would be the effect on operating income, if the company decides to outsource?
A) There would be no effect on operating income. B) Operating income would increase by $450,000. C) Operating income would increase by $120,000. D) Operating income would decrease by $10,000.