A board of directors may decide to restrict retained earnings to meet legal requirements or to meet a contractual restriction
Indicate whether the statement is true or false
True
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Answer the following statements true (T) or false (F)
1. An example of external failure costs is the cost of handling product warranties. 2. Activities to fix price are included in calculating the cost of quality. 3. Edwards Deming taught statistical quality control methods to the Japanese after World War II. 4. The Union of Japanese Scientists and Engineers instituted the Deming Prize. 5. Quality inspectors work for free is true regarding the phrase quality is free.
Cost of goods purchased is calculated as:
a. Cost of goods sold ? Beginning inventory + Ending inventory. b. Cost of goods purchased + Beginning inventory ? Ending inventory. c. Cost of goods purchased + Beginning accounts payable ? Ending accounts payable. d. Cost of goods sold ? Beginning accounts payable + Ending accounts payable.
Which of the following is NOT a reason that teams are more effective than individuals?
A) Teams produce a greater number of ideas and pieces of information than individuals acting alone B) Teams have higher levels of motivation and performance than individuals acting alone C) Team members are less likely to entertain risky alternatives D) Teams offset personal biases and blind spots that inhibit effective problem analysis
A court will not enforce a liquidated damages clause when:
A) The actual damages are difficult to determine and compare to the amount specified as liquidated damages. B) The amount of actual damages is significantly greater than the amount specified as liquidated damages. C) The amount specified is too small and considered to be unfair. D) The amount is so large that it is viewed as a penalty. E) The amount was agreed to by the parties prior to the existence of an actual breach.