Which of the below statements about cost allocation is most correct?
a. The direct method is conceptually best and least expensive to implement.
b. The reciprocal method is most widely used in practice.
c. The reciprocal method is conceptually best but typically the most expensive to implement.
d. Both a. and b. above are correct.
e. Both b. and c. above are correct.
Answer: c. The reciprocal method is conceptually best but typically the most expensive to implement.
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Jackson owns a large apple orchard. Jackson sells buyers a standard plot of land on the orchard for a uniform price. The buyers then lease the land back to Jackson, who completely manages the apple orchards on the buyers' behalf. Buyers share in the profits of the apples when sold. This arrangement:
a. is not an investment contract because it does not deal with stocks or bonds. b. is an investment contract because it involves agricultural products. c. is an investment contract because it satisfies the Howey test. d. is not an investment contract because it does not satisfy the Howey test
When doing a market analysis, the source of the BEST comparables would be:
A. Expired listing. B. Current listing. C. Tax appraisals. D. Recent sales.