As part of its expansion project, A.J. Industries Equipment Division has expanded its office space
by 200 square feet. The company's administrative overhead is allocated based on the square footage
of each business segment.
Although the total administrative overhead for the company will remain
the same, the Equipment Division will be charged more for administrative overhead. For the
Equipment Division expansion project, the administrative overhead is an example of a(n)
A) sunk cost. B) opportunity cost.
C) incremental opportunity cash flow. D) incremental cash flow.
A
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On July 1, 2016, Rio Corporation issued bonds with a face value of $100,000 and 12% interest payable semiannually. The bonds mature on June 30, 2021. The market rate of interest at the time of issuance was 14%, so the bonds were issued at a discount of $7,054. Using the effective interest method, the amount of discount that should be amortized by Rio on December 31, 2016, is
A) $702.35. B) $506.22. C) $493.75. D) $423.21.
For a consumer product sold door-to-door through a multilevel selling company like Mary Kay, ________ would be an appropriate control unit
A) countries B) states C) counties D) blocks
Coupons permit marketing managers to price discriminate, that is, charge different prices to different households
Indicate whether the statement is true or false
Heather owns a hair accessory company. She is looking to negotiate with her fabric supplier, which provides swimsuit material scraps, to reach a mutually beneficial agreement. Heather wants the supplier to consistently provide it with high-quality fabrics at a fair price within the allotted time frames. The fabric supplier would also be able to sell its otherwise unused scraps. The fabric supplier agrees and a formal contract is arranged. In the end, Heather has negotiated a long-term contract with the fabric supplier at a fair price, and the fabric supplier is guaranteed a new stream of business from Heather. Which type of bargaining does this scenario illustrate?
A. distributive bargaining B. competitive bargaining C. compromise bargaining D. integrative bargaining