Which of the following is true of product costs?
A) They are expensed in the period they are paid.
B) For external reporting, GAAP requires that they be expensed before the products are sold.
C) They are first recorded in an inventory account.
D) For merchandising companies, product costs do not include freight costs.
C
Business
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What is the future value of a stream of $800 annual payments worth to the investor at the end of 10 years if these payments are invested at an annual rate of return of 8.5%?
A) $11,868.08 B) $12,195.22 C) $13,334.90 D) $13,667.88
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When people satisfice, they select ________
A) a less than optimal choice B) the optimal choice under any conditions C) the second-best choice D) a choice that is likely to be inadequate
Business