Depletion expense

a. is usually part of the cost of goods sold
b. includes tangible equipment costs in the depletion base
c. excludes tangible development costs from the depletion base
d. excludes restoration costs from the depletion base

Ans: a. is usually part of the cost of goods sold

Business

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Elmo Inc, a global conglomerate, designed the ElBrush, an electric toothbrush. Sensing market demand for the electric toothbrush, Elmo started with an ideal selling price of $3 based on customer value considerations and then targeted costs to ensure that the price was met. This exemplifies ________.

A) competition-based pricing B) cost-plus pricing C) target costing D) everyday low pricing E) high-low pricing

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The risk premium on corporate bonds becomes smaller as the liquidity of the bonds falls

Indicate whether the statement is true or false

Business