The greatest risk for a new product or service offering is to present
a. a similar offering to an existing market
b. a dissimilar offering to a radically different market
c. a similar offering to different but similar market
d. a dissimilar offering to an existing market
e. a similar offering to a dissimilar market
B
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Phil Company leased a machine to its 100%-owned subsidiary, Scout Company. The direct financing lease required annual lease payments in advance of $2,319 for 5 years. The present value of the minimum lease payments at 8% interest is $10,000
The adjustment needed to arrive at consolidated net income for the first year after the lease is ____. a. $0 b. $800 c. $2,319 d. $10,000
Maria's Custom Tailoring is very labor intensive. Therefore, Maria has decided to use direct labor hours as the cost driver for assigning overhead costs to specific jobs. During the month of February, the company incurred overhead costs of $4,800. Total direct labor hours during the month totaled 1,200. Out of a total of 45 different jobs worked on during the month, Job #115 required 16 direct
labor hours to complete and Job #195 required 15 direct labor hours. The total amount of overhead allocated to these two jobs is: A) $124.00 B) $187.50 C) $137.50 D) $ 31.00