Jumbo Sales Corporation offers warranties on all their electronic goods
Warranty expense is estimated at 3% of sales revenue. In 2017, the company had $602,000 of sales. In the same year, it paid out $12,000 of warranty payments. Which of the following is the entry needed to record the estimated warranty expense?
A)
Estimated Warranty Payable 12,000
Cash 12,000
B)
Warranty Expense 12,000
Estimated Warranty Payable 12,000
C)
Warranty Expense 18,060
Estimated Warranty Payable 18,060
D)
Warranty Expense 18,060
Sales Revenue 18,060
C .Calculation: Warranty expense = $602,000 x 3% = $18,060
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Which of the following led Taylor to introduce an approach to management known as scientific management?
A. He believed that specific procedures and processes should be built into operations to ensure coordination of effort. B. He concluded that management decisions were unsystematic and that no research existed to determine the best means of production. C. He emphasized economical operations, adequate staffing, maintenance of inventories to meet consumer demand, and organizational control. D. He believed that bureaucratic structures can eliminate the variability that results when managers in the same organization have different skills, experiences, and goals. E. He advocated that the jobs themselves be standardized so that personnel changes would not disrupt the organization.
The manager of Hot Topics Fashion Shop has concluded that her customers find certain prices very appealing. Customers see prices above or below these levels as roughly equal--and price cuts in these ranges don't increase sales. This seems to call for
A) prestige pricing. B) bait pricing. C) leader pricing. D) psychological pricing. E) odd-even pricing.