The distinction between an infinite customer population and a finite customer population is whether the:
A) potential number of customers is appreciably affected by the number of customers already in the system.
B) number of potential customers exceeds the square of the number of servers.
C) number of potential customers exceeds the number of servers raised to the power of the number of channels.
D) number of customers exceeds infinity.
A
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Recording inventory at net realizable value is permitted, even if it is above cost, when there are no significant costs of disposal involved and
a. the ending inventory is determined by a physical inventory count. b. a normal profit is not anticipated. c. there is a controlled market with a quoted price applicable to all quantities. d. the internal revenue service is assured that the practice is not used only to distort reported net income.
Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent:
Direct materials $8,400 Direct labor 11,250 Variable overhead 12,600 Fixed overhead 16,200 An outside supplier has offered to sell Clemente the subcomponent for $2.85 a unit. If Clemente accepts the offer, by how much will net income increase (decrease)? a) $(8,850) b) $(2,850) c) $3,750 d) $19,950