In the economic order quantity (EOQ) model, the optimum order quantity is obtained by identifying where the total cost curve and the ordering costs curve intersect

When the direct method is used adjust cost to "market", what account is debited?

a) inventories b) cost of goods sold c) loss due to market decline of inventories d) allowance to reduce inventory to market value

Adam wants to buy a washing machine and is looking for something that is not too expensive. When he goes to make the purchase, he finds there are two options that meet his requirements

One is a Maytag product, while the other is a newly imported South Korean brand. Adam is not very familiar with the latter and does not hesitate in choosing Maytag. This example implies that ________. A) the imported brand will not survive the competition from Maytag B) Maytag has a positive customer brand equity C) the South Korean company has a low advertising budget D) the imported brand is unreliable E) the Maytag washing machine has better features than the imported brand