Which of the following would be considered a prevention cost of quality?

A. performing a 24-hour burn-in on every item produced to make sure it works before it is shipped
B. inspecting incoming raw materials
C. training workers to perform their jobs
D. issuing a recall of defective product before another customer is injured

Clarks Inc., a shoe retailer, sells boots in different styles. In early November the company starts selling “Sun-Boots” to customers for $70 per pair. When a customer purchases a pair of SunBoots, Clarks also gives the customer a 30% discount coupon for any additional future purchases made in the next 30 days. Customers can’t obtain the discount coupon otherwise. Clarks anticipates that approximately 20% of customers will utilize the coupon, and that on average those customers will purchase additional goods that normally sell for$100. Required: 1. How many performance obligations are in a contract to buy a pair of SunBoots? 2. Prepare a journal entry to record revenue for the sale of 1,000 pairs of SunBoots, assuming that Clarks uses the residual method to estimate the stand-alone selling price of SunBoots sold without the discount coupon.

The term ________ is used to describe a file from which data is read. a. output file b. input file c. read file d. append file

Classify each of the following costs as a product cost or period cost. If it is a product cost, classify it as direct (or indirect) materials, direct (or indirect) labor, or overhead.

c. Costs incurred by General Motors to ship automobile seats purchased from the Lear Corporation to GM assembly plants.

Classify each of the following costs as a product cost or period cost. If it is a product cost, classify it as direct (or indirect) materials, direct (or indirect) labor, or overhead.

b. Sales commissions paid to sales personnel at Gap retail stores.

Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be appropriate are presently on the market. The company has determined the following: Machine A could be purchased for $48,000. It will last 10 years with annual maintenance costs of$1,000 per year. After 10 years the machine can be sold for $5,000. Machine B could be purchased for$40,000. It also will last 10 years and will require maintenance costs of $4,000 in year three,$5,000 in year six, and $6,000 in year eight. After 10 years, the machine will have no salvage value. Required: Determine which machine Esquire should purchase. Assume an interest rate of 8% properly reflects the time value of money in this situation and that maintenance costs are paid at the end of each year. Ignore income tax considerations.

Which of the following is not a manufacturing cost?

A) direct materials

B) manufacturing overhead

C) accounting department costs

D) direct labor

This case introduces you to data analysis in a very basic way by allowing you to quickly extract, visualize, and compare financial data over a span of ten years for two (hypothetical) publicly traded companies: Discount Goods and Big Store. For this case, assume you are an analyst conducting introductory research into the relative merits of investing in these companies. For this initial look, you want to visualize the pattern of net income and of net operating cash flows over the past ten years for the two companies.

Use Tableau to create charts depicting (a) the trend of net income and (b) the trend of net operating cash flows over the period 2012–2021 for each of the two companies. Based upon what you find, answer the following questions:

1. One of the companies reported a huge loss on its income statement related to a foreign expatriation of properties in one of the years. Which company, which year, and what was the amount of net income or net loss that resulted for that year?
2. What was the amount of net operating cash flow in the year of the loss for the company reporting the loss?
3. Which company reported the largest percentage change in net operating cash flows between 2012 and 2021, and what was the percentage change for that company (rounded to nearest whole percentage point)?
4. Which company reported the largest percentage change in net income between 2012 and 2021, and what was the percentage change for that company (rounded to nearest whole percentage point)?

How will melting permafrost in polar regions lead to a positive feedback loop?

Access the FASB Accounting Standards Codification at the FASB website (asc.fasb.org). Determine the specific citation for each of the following items: 1. The topic number for business combinations. 2. The topic number for related party disclosures. 3. The topic, subtopic, and section number for the initial measurement of internal-use software. 4. The topic, subtopic, and section number for the subsequent measurement of asset retirement obligations. 5. The topic, subtopic, and section number for the recognition of stock compensation.

In terms of financial measures, weeks of inventory and inventory turns are reflected in:

a. cost of goods sold
b. operating expenses
c. cash flow
d. working capital

Which of the following is a desirable characteristic of money? A. fixed supply B. large denominations C. made of precious metal D. widely accepted E. backed by commodities

The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer and then sold the cars after three years of use. The company's present fleet of cars is three years old and will be sold very shortly. To provide a replacement fleet, the company is considering two alternatives:

Purchase alternative: The company can purchase the cars, as in the past, and sell the cars after three years of use. Ten cars will be needed, which can be purchased at a discounted price of $17,000 each. If this alternative is accepted, the following costs will be incurred on the fleet as a whole:

$$\begin{array}{lr} \text{Annual cost of servicing, taxes, and licensing } & \$3,000 \\ \text{Repairs, first year} & 1,500 \\ \text{Repairs, second year} & 4,000 \\ \text{Repairs, third year} & 6,000 \\ \end{array}$$

At the end of three years, the fleet could be sold for one-half of the original purchase price.

Lease alternative: The company can lease the cars under a three-year lease contract. The lease cost would be $55,000 per year (the first payment due at the end of Year 1). As part of this lease cost, the owner would provide all servicing and repairs, license the cars, and pay all the taxes. Riteway would be required to make a$10,000 security deposit at the beginning of the lease period, which would be refunded when the cars were returned to the owner at the end of the lease contract.

Riteway Ad Agency's required rate of return is 18%.

Required:

1. What is the net present value of the cash flows associated with the purchase alternative? Round all dollar amounts to the nearest whole dollar.

2. What is the net present value of the cash flows associated with the lease alternative? Round all dollar amounts to the nearest whole dollar.

3. Which alternative should the company accept?

The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer and then sold the cars after three years of use. The company’s present fleet of cars is three years old and will be sold very shortly. To provide a replacement fleet, the company is considering two alternatives:

Purchase alternative: The company can purchase the cars, as in the past, and sell the cars after three years of use. Ten cars will be needed, which can be purchased at a discounted price of $17,000 each. If this alternative is accepted, the following costs will be incurred on the fleet as a whole:

Annual cost of servicing, taxes, and licensing$3,000
Repairs, first year                                     $1,500
Repairs, second year$4,000
Repairs, third year                                     $6,000

At the end of three years, the fleet could be sold for one-half of the original purchase price.

Lease alternative: The company can lease the cars under a three-year lease contract. The lease cost would be$55,000 per year (the first payment due at the end of Year 1). As part of this lease cost, the owner would provide all servicing and repairs, license the cars, and pay all the taxes. Riteway would be required to make a $10,000 security deposit at the beginning of the lease period, which would be refunded when the cars were returned to the owner at the end of the lease contract.

Riteway Ad Agency’s required rate of return is 18%.

Required:

1. What is the net present value of the cash flows associated with the purchase alternative? Round all dollar amounts to the nearest whole dollar.
2. What is the net present value of the cash flows associated with the lease alternative? Round all dollar amounts to the nearest whole dollar.
3. Which alternative should the company accept?