Profit maximization is NOT an adequate goal of the firm when making financial decisions because:
A) it does not necessarily reflect shareholder wealth maximization.
B) it ignores the risk inherent in different projects that will generate the profits.
C) it can over-emphasize a project's short-term returns.
D) All of the above.
D
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For June, Gold Corp. estimated sales revenue at $600,000. It pays sales commissions that are 4% of sales. The sales manager's salary is $285,000, estimated shipping expenses total 1% of sales, and miscellaneous selling expenses are $15,000. How much are budgeted selling expenses for the month of July if sales are expected to be $540,000?
a) $327,000 b) $27,000 c) $42,000 d) $330,000
When a company charges the same rate to ship a product anywhere in the United States, it is using which form of pricing?
A) freight absorption B) F.O.B. factory C) F.O.B. origin D) uniform delivered E) basing-point