Illustrate the differences between prevention and appraisal costs using a restaurant setting as an example
What will be an ideal response?
Prevention costs are associated with preventing defects before they happen. In a restaurant, this would be the expense associated with training employees how to take an order, prepare food, bus tables or in mistake-proofing systems. Appraisal costs are incurred in assessing the level of performance of the firm's processes. In a restaurant this might be inspections by managers, reviewing and acting on customer satisfaction cards, or testing prepared dishes.
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Mickelson Company acquired an 80% interest in Footjoy on January 1, Year 1, for $1,200,000. The book value of Footjoy's identifiable net assets at that date was $900,000. One depreciable asset (10-year life) had a fair value that exceeded its book value by $100,000. Footjoy reported $60,000 of net income in Year 1 and paid $40,000 in dividends. What was the noncontrolling interest in NET ASSETS as of the date of DDEC 31, Year 1?
a. $242,000 b. $302,000 c. $304,000 d. $310,000
According to Project GLOBE, ________ refers to the degree to which individuals in organizations or societies encourage and reward individuals for fairness, altruism, generosity, caring, and kindness toward others
A) institutional collectivism B) in-group collectivism C) humane orientation D) performance orientation