The lower-of-cost-or-market basis for inventory valuation is a conservative accounting policy because
a. it recognizes losses from decreases in market value before the firm sells goods.
b. it does not record gains from increases in market value before a sale takes place.
c. it reports inventories on the balance sheet at amounts that are never greater, but may be less than acquisition cost.
d. all of the above
e. none of the above
D
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A price tactic that requires the buyer to absorb the freight costs from the shipping point is called ______________.
A. value-based pricing B. FOB origin pricing C. uniform delivered pricing D. zone pricing
The costs that include design, material, manufacturing, packaging, and other costs before a sale can be made to the customer is referred to as
a. customer directed costs b. presales costs c. cost of goods sold d. operating costs
What was the defense department penalty for Boeing for using the Lockheed Martin documents?
a. $1 billion fine b. $300 million fine c. $500 million fine d. $1 billion in lost contracts
In contrast to a criminal case, in a tort case:
a. the alleged wrongdoer is being tried by the government b. the victim is only a witness, not a party to the case c. the victim does not receive compensation for injuries, but the wrongdoer may have to pay restitution d. the case is brought to court by the government e. none of the other specific choices