Residual income indicates how ________.
A) efficiently a division uses its financial leverage to generate sales and thereby profits
B) much operating income the division earns on every dollar of sales
C) much return a division generates on average assets
D) much extra operating income a division generates above the minimum acceptable le
D) much extra operating income a division generates above the minimum acceptable le
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Which of the following is the most elementary pricing method?
A) value pricing B) going-rate pricing C) markup pricing D) target-return pricing E) perceived-value pricing
Bart’s company has developed a draft code for the entire accounting firm. Now having reached the step of “code alignment,” they should ______.
a. compare their code to the missions and goals of each department b. put the code up to a vote by management c. make sure each employee’s values is aligned with the code d. compare the code to that of the larger accounting profession
The ________ is defined as the level where revenue coming into a firm is sufficient to cover expenses.
Fill in the blank(s) with the appropriate word(s).
Which one of the following statements about codes of conduct (ethics) is false?
A. They are formalized rules and standards that describe what a company expects of its employees. B. They must be detailed enough to take into account many possible situations. C. They encourage ethical behavior by eliminating opportunities for unethical behavior because employees know what is expected of them. D. They help marketers deal with marketing issues by prescribing and limiting certain activities. E. Top management must provide leadership in implementing codes of ethics.