Suppose that merchandise is sold on account. The buyer has not yet paid the invoice because the buyer is dissatisfied with the quality of the merchandise. The seller grants an allowance to the buyer who then agrees to keep goods instead of returning them. What is the effect of granting the allowance on the financial statements of:a) The seller?b) The buyer?
What will be an ideal response?
a) Assets decrease (accounts receivable) and stockholders' equity (revenue) decreases. Revenue and net income decrease. There is no effect on the statement of cash flows.
b) Assets (inventory) decrease and liabilities (accounts payable) decrease. There is no effect on the statement of cash flows.
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Choice of survey method can be made by answering which of the following questions? (Choose the most complete answer.)
A) "Which of the data collection methods will be the least expensive?" B) "Which data collection method is the customer most comfortable with?" C) "What data collection method will generate the most complete and generalizable information within the time horizon and without exceeding the allowable expenditure for data collection?" D) "Which data collection method is the researcher most comfortable with?" E) "How many data collection methods can be used to validate the data?"
Kaizen costing helps to
a. reduce product costs of products in the design and development stage. b. keep the target cost as the primary focus after a product enters production. c. keep profit margin relatively stable as product price declines over the product life cycle. d. reduce the cost of engineering change orders during each stage of the product life cycle.
If you are more likely to trust a team leader based on feelings and emotions about that team leader, then you have ________ -based trust.
What will be an ideal response?
Consider a work center with a demand rate of 50 parts per hour and using a container that can hold 12 parts. It is estimated that the container takes 1 hour to cycle through the work cell. Assume a safety stock level of 10 percent. What is the maximum inventory level for this system?
a. 20 b. 40 c. 60 d. Cannot be determined from the information given