Casual Store operates a large chain of retail stores. The company has four warehouses that are located in various parts of the country. The cost of operating the warehouses is a cost incurred because the goods have not been sold and therefore do not enter into the cost of the ending inventory.

Which of these is a step in the creation of a BARS scale?

A) re-sorting incidents into dimensions B) counting how many critical incidents fit into each dimension C) surveying applicants to see if they like the scale D) rating the social desirability of each item

The market risk premium:

A) varies over time as both the risk-free rate of return and the market rate of return vary. B) plus the risk-free rate of return equals the cost of capital for any firm with a beta of zero. C) is equal to one percent for a risk-free asset. D) is equal to the risk-free rate of return multiplied by the beta of a firm. E) is modified by the standard deviation when computing the cost of equity.