Changes in capacity may lead, lag, or straddle the demand

Shipman, Inc. has 7 units in inventory on December 31. The units were purchased in November for $190 each. The price lists from suppliers indicate the current replacement cost of the item to be $186 each

What is the effect on gross profit if Shipman values its ending merchandise inventory using the lower-of-cost-or-market rule? A) The gross profit would increase by $4. B) The gross profit would not be affected. C) The gross profit would decrease by $28. D) The gross profit would increase by $28.

The Hawthorne Effect demonstrated that productivity increases if which of the following occurs?

A. Workers are given special attention B. Workers receive significant incentives C. Workers are left alone. D. Workers are properly trained.