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NEW QUESTION 24
A company can by identical raw materials from four suppliers. Each supplier offers a different term of sale.
Which one of the following terms of sale has the highest effective annual interest rate if the company does not take the cash discount?

A. 1/10, net 90B. 1/10, net 45C. 1/30 net 45D. 1/30, net 90

Answer: C

 

NEW QUESTION 25
Selected data for Bittner, inc is shown below (in thousands)

A. 52.73%B. 52.25%C. 4727%D. 47.75%

Answer: C

 

NEW QUESTION 26
An accountant is employed in the financial reporting department of a publicly-traded company. The company s compensation plan includes a year-end bonus based on the entity's financial performance and stock option rewards based on individual performance Using iMAs Statement of Ethical Professional Practice, identify the ethical Issues, if any, that may Be presented by this company s compensation plan.

A. No significant potential threats are presented by the planB. The plan could threaten the accountant's integrityC. The pan could threaten the accountant s competenceD. The plan could threaten the accountant s credibility

Answer: B

 

NEW QUESTION 27
Identify the market structure in which OLI operates and explain how OLi's pricing is affected by this mantel structure Essay Online Learning Inc. lOLI) is a privately-held company based in the IUC that specializes in providing online courses in English as a Second Language (ESL). OLI is trying to set up a new sales office in a foreign country.
It needs a business license to operate in that country. The license normally lakes six months to obtain. An official of that country said that he could expedite the process for a fee of €300.
OLI estimates the new sales office can bring €300,000 incremental profit annually OLI has just launched a new online 40-houi course to help adult ESL learners master basic business English. The price of the new course is €500 per student, the variable cost is €300 per student, and the total fixed cost of the new course is
€300.000 per year OLI spent €200.000 to develop the new course before launching it. There are many online course providers in the marketplace, and each has its own feature However, OLI's highly qualified staff and good reputation have enabled it to charge a premium price compared to its major competitors. Recent market research indicates that if OLI raises the price of its new business English course by 10V the student enrollment would decrease by 5V A regional airlines company in Asia has approached OLI and offered to enroll 1.000 of its employees in the new course if OLI would agree to a special price of €350 per employee If OLI accepts this offer, an additional €10,000 onetime cost would be required to temporally expand its capacity to accommodate the new students.

Answer:

Explanation:
See the explanation for the answer.
Explanation
The market is quite sensitive to prices as the change in price is affecting me demand However the company has less opportunity over here to increase the prices for its premium service as the customers would be willing to pay less and get the same service from the competitor.

 

NEW QUESTION 28
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