Why is variable costing not used extensively in external reporting?
Variable costing is not used extensively outside of the firm because absorption costing is required by GAAP and the IRS.
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Compensation systems can help create the conditions that contribute to high performance. Consequently, organizations can increase empowerment and job satisfaction by
A. communicating the basis for decisions about pay. B. disassociating compensation from performance measures. C. discouraging negotiations regarding pay. D. limiting employee participation in management. E. limiting the use of gainsharing and profit sharing.
What do trade credit terms of "2/15, net 30" mean to a buyer?
a. A discount of 20 percent is offered if the bill is paid within 150 days; otherwise, the entire amount is due within 300 days. b. A discount of 20 percent is offered if the bill is paid within 15 days; otherwise, the entire amount is due within 30 days. c. A discount of 1 percent is offered if the bill is paid within 10 days; otherwise, the entire amount is due within 30 days. d. A discount of 2 percent is offered if the bill is paid within 15 days; otherwise, the entire amount is due within 30 days. e. A discount of 2 percent is offered if the bill is paid within 30 days; otherwise, the entire amount is due within 15 days.