BUS

In the context of the supply chain for a product, vendor-managed inventory is a strategy that allows suppliers to determine buyer needs and automatically ship product T/F

True

In the context of financial accounting, the external stakeholders of a firm:

are seldom interested in analyzing detailed accounting information about the individual departments within the firm.

Brendon Steels, a steel manufacturer, sells its steel rods and steel slabs to Widget Corp. That, in turn, sells them to carious construction companies. In this scenario, Widget Corp. is a_________

channel intermediary

Odd pricing refers to the practice of:

ending prices in numbers below even dollars and cents.

In the context of pricing strategies, companies usually express volume goals in the terms of profitability. T/F

false

Neptune Corp. buys a wide range of products from automobile parts manufacturers, motorcycle riding gear manufacturers, and commercial paint manufacturers. It then sells these products to a wide range of different customers. It is evident that Neptune Corp. is a(n) _____.

independent wholesaling business

The management of Lovelo, a candy manufacturing company, comes across a case of employee theft in their inventory. In this case, the company should seek the help of a(n) _____ to look into the matter.

internal audior

Daquip is a baseball kit manufacturer. It sells its products to final consumers through its own stores at a huge discount. From the given scenario, it can be concluded that Daquip is a(n) _____.

outlet store

In the context of distribution strategies, _____ means placing your products only with preferred retailers.

selective distribution

One core role of distributors is to reduce the number of transactions for goods to flow from producers to consumers t/f

true

When merchant wholesalers take legal title to the goods they distribute, they reduce the risk of producers' products being damaged or stolen. t/f

true

_____ are distribution organization that facilitates the movement of products from the producer to the consumer.

Channel intermediaries

Allied Corp. is redesigning its path through which its products reach its consumers. The path involves producers, wholesalers, retailers, and customers. In the given scenario, it can be said that Allied Corp. is redesigning its_____.

Channel of distribution

Which of the following are the elements of distribution strategy?

Channels of distribution and physical distribution

In the context of physical distribution, which of the following is a key management decision regarding customer service?

How can we reduce waiting times and facilitate interactions?

Which of the following statements is true of ownership utility?

It adds value by making it easier for customers to possess the goods that they purchase.

Which of the following statements is true of demand-based pricing?

It is more market-focused than cost-based pricing.

Providing credit, cashing checks, delivering goods, and installing products are all examples of ___.

Ownership utility

Which of the following modes of transportation provides the lowest flexibility in handling?

Pipelines

Which of the following statements is true of the members of a distribution channel?

Some distributors act as both wholesalers and retailers.

In the context of retail store categories, an outlet stores is a producer-owned store that sells directly to the public at a huge discount. T/F

TRUE

Marketers can evaluate odd pricing strategy by examining its response in the target market. T/F

TRUE

Sales above the breakeven point will generate a profit T/F

TRUE

Which of the following is true of balance sheets?

The balance sheets of different firms vary in specifics.

_____ provide analysis and prepare reports and financial statements for their organization.

Management accountants

The three kinds of basic financial statements that are prepared in financial accounting are:

balance sheet, income statement, and statement of cash flows

Dominic's Store offers a wide variety of clothes, furniture, cosmetics, and office supplies at significantly lower prices and provides less service than most department stores. In this scenario, Dominic's Store most likely is a(n) _____.

discount store

A firm's operating budget represents the firm's overall plan of action for a specified time period. Group of answer choices t/f

f

In order for CPA firms to perform audits with integrity, they must be tied to the firms they audit. t/f

f

In the accounting equation, assets are equal to liabilities minus the owners' equity. t/f

f

Intangible assets are assets that have no physical existence—you can't see or touch them—but they still have value. t/f

f

The Securities and Exchange Commission (SEC) bans publicly traded corporations from making comparative financial statements t/f.

f

The deduction of a firm's expenses from its revenue is shown in the income statement of the firm. t/f

f

The difference between a firm's revenue and its cost of goods sold is its accounts receivable. t/f

f

The direct labor method of costing is a technique to assign product costs based on links between the daily tasks of a company that drive costs and the production of specific products. t/f

f

Which of the following is a criterion that needs to be fulfilled by an individual to be recognized as a certified public accountant?

he or she must complete the equivalent of 150 semester hours of college education with a heavy emphasis in accounting and other business-related courses.

METS Pens, a pen manufacturing company, sometimes gives away some of its gel pens practically for free but reaps handsome profits as customers buy pen refills. In the context of pricing strategies, it is evident that METS Pens has adopted the strategy of _____.

loss-leader pricing

The fixed cost of Allied Breads, a bread baking company, is $200,000 per year. The cost of equipment and labor to make one packet of bread is $3. If the breakeven point of the company is 100,000 packets of bread, Widget Corp. needs to sell its bread packets at a price of _____ per packet to make profits.

more than $5

In the context of marketers selling their products, _____ means encouraging consumers to buy through different venues.

multichannel retailing

Providing credit, cashing checks, delivering goods, and installing products are all examples of _____.

ownership utility

Ziffcorp, an electronic goods manufacturer, recently launched a new gaming console at a very low price. The company aims to capture as much of the market as possible by offering rock-bottom prices. It aims to compensate for the loss by increasing the sales volume. In the context of pricing strategies, it is evident that Ziffcorp has adopted the strategy of _____.

penetration pricing

Gas stations and fast food that often cluster conveniently at the bottom of freeway ramps are example of;

place utility

In the context of the various pricing strategies, loss-leader pricing means:

pricing a handful of items temporarily below cost to drive traffic.

Lorraine works for an accounting firm that performs external audits, provides consulting services, and does the tax preparation for other businesses and individuals. Given this information, Lorraine is most likely a _____.

public accountant

Sending products by _____ is the least expensive option available to producers.

ship

A static budget is based on a single assumed level of sales and is an excellent tool for planning. t/f

t

Balance sheets usually classify assets into at least two major categories: current assets and property, plant, and equipment assets. t/f

t

Common stock is a key owners' equity account for corporations. t/f

t

Expenses such as insurance and advertising that have been cleared before they are due are known as prepaid expenses. t/f

t

Inventory is an example of a current asset. t/f

t

John and Elizabeth evaluate three telecommunication companies to determine the best company to invest in. A horizontal analysis will enable them to make comparisons of financial statements of the three companies over the past several years and help in the determination of the increase in their profits. t/f

t

The chief financial officer of NoveauNoir Production Company requests his accountant, Felipe, to prepare a customized report of the cost overruns at the company's production facility in Los Angeles. In this scenario, Felipe is a managerial accountant. t/f

t

The responsibilities of _____ often include checking the stock, suggesting reorder quantities, and removing out-of-date goods.

truck jobbers

Agents and brokers facilitate transactions in exchange for commissions. t/f

true

Drop shippers are common in industries with bulky products, such as coal or timber T/F

true

In the context of the distribution strategy of a product, no one stands between the producer and the customer in a direct distribution channel. t/f

true

Place utility satisfies customer needs by providing the right products in the right location. t/f

true

The members of the Financial Accounting Standards Board (FASB) are appointed by the Securities and Exchange Commission. Group of answer choices t/f

f

Determine the fixed cost of a pencil manufacturing company per year if its breakeven point is 300,000 packets of pencils, selling price of each packet of pencil is $3, and the cost of equipment and labor to manufacture one packet of pencil is $1

$600,000

Which of the following are the elements of distribution strategy?

Channels of distribution and physical distribution.

Which of the following is a form of nonstore retailing?

Direct selling

In the context of the various pricing strategies, which of the following statements is true of high/low pricing?

It can train consumers to buy only when products are on sale.

Which of the following statements best defines a channel of distribution?

It is the network of organization and processes that links producers to consumers.

Which of the following statements is true of a supercenter?

It sells a complete selection of food and general merchandise at a steep discount in a single enormous location.

_____ involves hiring independent contractors to sell products to their personal network of friends and colleagues and to recruit new salespeople in return for a percentage of their commissions.

Multilevel marketing

In which of the following ways do public accountants differ from management accountants?

Public accountants conduct external audits, whereas management accountants analyze the financial statements of their own organization.

Saturn Systems, an electronic goods manufacturer, sells its LED bulbs to Shock wave Enterprise, which in turn sells those bulbs to final customers. In this scenario, Shockwave Enterprise is a______.

Retailer

Which of the following statements is true of distributors in a channel of distribution.

They add value in number of different ways to products.

The income statement is also known as the statement of financial position. t/f

f

Everyday-low pricing means pricing a handful of items temporarily below cost to drive traffic T/F

false

To give the company's stockholders, creditors, and other external stakeholders an accurate idea of the company's overall performance, Rowensport Corporation, a multinational company, releases statements that contain details of the company's profits and losses over the past five years. In this scenario, the company is most likely involved in _____.

financial accounting

Mars is an independent distributer that distributes goods, such as keyboards, monitors, and computer cabinets to various business users. The company takes legal possession of the goods it distributes. The company warehouses the products, ships them to its customers, provides promotional assistance to the manufacturers, provides product repairs, and credit to customers. It is evident that Mars Inc. is a _____.

full-service merchant wholesaler

While performing a financial analysis for his organization, Morris discovers that there has been mismanagement of employee funds over the past three months. He immediately reports this to his supervisors. In this scenario, Morris is most likely a(n) _____.

internal auditor

In the context of financial accounting, if a firm wants to introduce any significant changes in how it prepares its financial statements, _____.

it must first clearly identify and describe these changes as per the generally accepted accounting principles (GAAP)

Daryl is an accountant in Vansert Inc., a multinational healthcare company. He is responsible for providing analysis, preparing financial statements, and reporting the financial transactions of the company to the deputy chairman of the company. In this scenario, Daryl is most likely a _____. Group of answer choices

management accountant

Sebastian is an employee at Plowell Inc. His duties include preparing reports and analyzing company data. He also appraises financial performances and verifies the accuracy and validity of the company's internal records. In this scenario, Sebastian's role is that of a _____ in the organization.

management accountant

Agents and brokers facilitate transaction in exchange for commission T/F

tRUE

When merchants wholesalers take legal title to the good they distribute, they reduce the risk of producers' products being damaged or stolen t/f

true

Spade Archer buys surgical knives, scissors forceps, needle holders and retractors from a surgical equipment manufacturer and sells them to local hospitals. In this scenario, Spade Archer is a _____.

wholesaler