The primary advantage of establishing cost pools is reducing the number of individual cost allocations that are made.
Answer the following statement true (T) or false (F)
True
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The following set of items describes activities completed by a company in purchasing and paying for merchandise. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. The receiving department compares the quantity received with the quantity printed on the receiving report when the purchase order was prepared
a. Adheres to sound internal control procedures b. Violates sound internal control procedures c. Neither strengthens nor violates internal control
"Sales promotion" involves boosting sales in short term
Indicate whether the statement is true or false
Taking a physical inventory refers to making a count of all merchandise on hand at a particular time
Indicate whether the statement is true or false
Which of the following is true of service companies?
A) All costs of service companies are product costs. B) Service companies modify and resell products they buy from manufacturers. C) Revenues of service companies are only recorded on cash receipt. D) Service companies carry no inventories of products for sale.