Seasonal discounts tend to smooth out sales during the year and therefore permit year-round operation.
Answer the following statement true (T) or false (F)
True
Seasonal discounts are discounts offered to encourage buyers to buy earlier than present demand requires. They even out sales over the year for producers, intermediaries, and service firms.
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A. Raw materials stores. B. Cost accounting. C. IT. D. Inventory management.
Which of the following media would be effective in communicating if one needs to consider or deal with emotions?
a. letter b. phone c. email d. text
Gift promises create legally enforceable contracts
Indicate whether the statement is true or false
Kohers Inc. is considering a leasing arrangement to finance some manufacturing tools that it needs for the next 3 years. The tools will be obsolete and worthless after 3 years. The firm will depreciate the cost of the tools on a straight-line basis over their 3-year life. It can borrow $5,400,000, the purchase price, at 9.6% and buy the tools, or it can make 3 equal end-of-year lease payments of $1,900,000 each and lease them. The loan obtained from the bank is a 3-year simple interest loan, with interest paid at the end of the year. The firm's tax rate is 40%. Annual maintenance costs associated with ownership are estimated at $240,000 payable at the end of the year, but this cost would be borne by the lessor if the equipment were leased. What is the net advantage to leasing (NAL), in
thousands? (Suggestion: Delete 3 zeros from dollars and work in thousands.) Do not round your intermediate calculations. A. $634 B. $793 C. $674 D. $872 E. $951