Direct product profitability adjusts the gross margins of different products to reflect differences in handling costs and selling costs
Indicate whether the statement is true or false
True
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Which of the following statements is CORRECT?
A. If a firm is found guilty of cannibalization in a court of law, then it is judged to have taken unfair advantage of its customers. Thus, cannibalization is dealt with by society through the antitrust laws. B. If cannibalization exists, then the cash flows associated with the project must be increased to offset these effects. Otherwise, the calculated NPV will be biased downward. C. If cannibalization is determined to exist, then this means that the calculated NPV if cannibalization is considered will be higher than the NPV if this effect is not recognized. D. Cannibalization, as described in the text, is a type of externality that is not against the law, and any harm it causes is done to the firm itself. E. If a firm is found guilty of cannibalization in a court of law, then it is judged to have taken unfair advantage of its competitors. Thus, cannibalization is dealt with by society through the antitrust laws.
______ is a significant breakthrough in technology that leads to design competition and a new technology cycle.
a. Strategic change b. Discontinuous change c. Technological change d. Incremental change
Shareholders' equity is a residual interest. It represents the shareholders' claim on the assets of a firm after the firm satisfies all higher-priority claims
Indicate whether the statement is true or false
The one advantage of the direct write-off method is that it:
a. is simple to apply. b. requires several calculations to determine. c. is not required for tax purposes. d. can be used along with the allowance method. e. none of the above.