BUSINESS MANAGEMENT Lecture Notes - Lecture 3: Financial Statement

5 views3 pages

ellainequibol212

20 Feb 2022

School

Cavite State University

Department

Business

Course

BUSINESS MANAGEMENT

Professor

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

This necessitates that a business recognizes the purchase of goods, services, or investments at the price paid. The asset is then retained on the balance sheet at its historical value, unadjusted for market value changes. This necessitates that a company recognize revenue when it is earned rather than when it is recovered. This accrual accounting method provides a more accurate picture of the period"s financial events. It specifies that all costs must be matched and recorded with their respective income for the period in which they were incurred, not when they were paid. This principle works in tandem with the revenue recognition principle, which ensures that all revenues and expenses are accrued. Knowledge that has a significant impact on a user"s decision about an entity must be disclosed in the financial statements" footnotes. This prevents businesses from concealing critical information about accounting practices and known contingencies in the future.

Related Questions

1. What is a global pricing strategy that relies on a fixed price for all export markets?

a. Rigid cost-plus pricing

b. Push marketing

c. Dumping

2. Brunner Inc. is a cell phone company. They have multiple distribution channels worldwide already set, as they directly sell to the main carriers in the major economies. Normally, their cell phones are smartphones for the high-end users, but they now have released a new brand for the mid-range clients. They did not want to release the mid-range cell phones under the Brunner trademark, because it is a different market segment. The top mobile carriers in the top economies all will sell their new mid-range brand. Which of the following BEST explains what Brunner is doing in this scenario?

a. Brunner is using push marketing, in which the traditional distributing partners will help them reach the consumer. Brunner should use advertisement with the new brand name, but they should include "made by Brunner." This way, the plan will report the most revenue.

b. Brunner is using viral marketing, in which the traditional distribution partners will help them reach the consumer. Brunner should not put their trademark name in any of the new brand ads, as it will damage their luxury brand reputation. This way the company will get the most revenue.

c. Brunner is using guerilla marketing, in which the traditional distribution partners will help them reach the consumer. Brunner should use advertisement with the new brand name, but they should include "made by Brunner." This way, the plan will report the most revenue.

3. Walter Co. manufactures veterinary feed. Since cats and dogs eat similar food all over the world, they standardized global branding. The product is exactly the same, and they export it to supermarket chains all over the world. They do not even have to worry about translating the packaging, because people see the pictures of dogs and cats. However, Walter Co. noticed that in the Middle East markets, sales went down suddenly when an NGO said the feed included pork. West Africa and North Africa's sales also started to decrease. What motive would there be to change their current business model?

a. They should change the glocalization they have been doing recently. The branding is too responsive to the culture and structure. This has offended many people trying to buy their product, but they find that it is importing foreigner values.

b. They should keep the same operations: a standardization strategy. They should refocus their attention to other markets, which can help get more revenues by increasing economies of scale.

c. The company should localize, to determine national preferences. They should keep the global branding promotion the same to save costs, but they should open a processing plant in the Middle East to make a pork-less feed for the affected markets.

4. _________ agents act as am importer's representative with local customs agencies.

a. Export

b. Forwarding

c. Clearing

d. Purchasing

5. What do distribution agents do?

a. They help companies distribute talent across an organization.

b. They forecast new business models.

c. They help companies sell their products in individual markets by doing product demonstrations.

d. They help companies import and export goods.

6. When considering the ways companies can gain advantages by being globally integrated, having a digital platform

a. may mean creating a network of specialized, focused operations around the world that are tightly controlled by a central hub.

b. may mean maintaining a small number of large facilities to make products for export to markets around the world.

c. allows people all over the company and even outside it to easily contribute to knowledge and products.

d. means making tight links between value-chain activities.

7. What is the first step in getting local branches to act like local innovators?

a. Launching local branding campaigns

b. Building new offices

c. Conducting local market research

8. Companies typically move abroad in order to _____________.

a. acquire new resources

b. learn new cultures

c. reduce risk

9. Which of the following is not a primary emerging market that the US is looking to expand into?

a. India

b. Mexico

c. China

d. Brazil

10. In the context of globalization, identify a difference between the research and development (R&D) trend in the United States when compared with other nations of the world.

a. Unlike Japan, the United States represents less than 26 percent of global spending on R&D.

b. Unlike in other countries, in the United States, private nonprofit donors are not allowed to invest in R&D.

c. In the United States, nearly 70 percent of R&D is funded by the government.

d. Unlike in Asian countries, R&D spending in the United States is proportional to the increase in the countries' gross domestic product (GDP).

cardianwilliams

QUESTION 1

What is the method to establish pay grade widths in which the point spreads are equal for all pay grades?
a. pay grade bandwidth approach
b. equal interval approach
c. equal increase approach
d. equal percentage approach

1 points

QUESTION 2

Which variable may be considered an advantage associated with the "a priori" method in determining factor weights?
a. It simple and easily understood.
b. It assumes pay structures used for benchmarking are correct.
c. It emphasizes current pay scales.
d. It forces committee members to work together.

1 points

QUESTION 3

The point method of job evaluation has many benefits, but it does have some drawbacks. From the list below, what would be considered a drawback of the point method?
a. creates too large of a hierarchy of jobs
b. creates a large number of appeals
c. regression line is very rarely applied to the pay system
d. appears scientifically objective but in reality it is very subjective

1 points

QUESTION 4

You have been provided with the following information about a certain pay range: minimum $50,000; mid-point $55,000; and maximum $60,000. What is the range spread and the range spread percentage?
a. $10,000 and 20%
b. $5,000 and 83.33%
c. $5,000 and 20%
d. $10,000 and 8.33%

1 points

QUESTION 5

Which step in developing a job evaluation system using the point method allows you to quantify the extent to which each factor is present in a job?
a. defining the factors
b. weighting the factors
c. scaling the factors
d. testing the system

1 points

QUESTION 6

A company decides to include "customer contact" as a compensable factor in their job evaluation system. What conclusion can you draw from this?
a. The organization does not value "customer contact" above all other compensable factors.
b. The organization wants to avoid customer complaints.
c. "Customer contact" would be explicitly linked to performance bonuses.
d. "Customer contact" is central to the execution of the company's strategy.

1 points

QUESTION 7

Which of the following should be avoided when using the point method of job evaluation?
a. benchmarking
b. factor overlap
c. equal interval approach
d. enlargement of pay grid

1 points

QUESTION 8

A "match the market" pay strategy means all jobs in the organization will actually match the market.

True

False

1 points

QUESTION 9

Considering the factor of "supervisory responsibility," which degree statement is an example of inconsistent construct formation?
a. Degree 1: no supervisory responsibilities
b. Degree 2: responsible for supervision of one to three subordinates
c. Degree 3: responsible for supervision of four to nine subordinates
d. Degree 4: responsible for development of annual operating budget

1 points

QUESTION 10

In a point method of job evaluation, large pay range overlaps are preferred.

True

False

1 points

QUESTION 11

Which term refers to the differences between the range midpoints of adjacent pay grades in a pay structure expressed by dollars?
a. range spread
b. broadbands
c. split pay range
d. intergrade differentials

1 points

QUESTION 12

Which of the following best defines a benchmark job?
a. It is a job in the firm's job evaluation system for which there is a good match in the labour market data.
b. It is a job in the market data that matches a pay overlap.
c. It is the job in the organization that has a regression line equal to (1) on the pay policy line.
d. It is the job that is adjusted to the market line for the intended pay level.

1 points

QUESTION 13

Mille, a human resource compensation specialist, determines that the correlation coefficient is nearly –1 (negative one) after calculating a straight regression line. What conclusion can Mille make based on this nearly perfect correlation coefficient?
a. The lower the job evaluation points, the lower the pay
b. The higher job evaluation points, the higher the pay.
c. The higher the job evaluation points, the lower the pay.
d. The nearly –1 (negative one) correlation coefficient implies that no change in the pay system is required.

1 points

QUESTION 14

Your task is to persuade an executive to design a job evaluation system using the point method. What would be the focal point of your argument?
a. The point method has a high degree of accuracy in measuring jobs.
b. The point method includes performance management.
c. The point method is simple to use.
d. The point method is the only system recognized by employment equity legislation.

1 points

QUESTION 15

The terms job evaluation and job analysis are interchangeable.

True

False

1 points

QUESTION 16

One of the greatest benefits of using a point method of job evaluation is that it is statistically scientific.

True

False

1 points

QUESTION 17

Which statement best defines range spread?
a. It is the difference between the first and last pay broadband
b. It is the difference between the range midpoints of adjacent pay grades in a pay structure, expressed in dollars.
c. It is calculated by dividing the intergrade differential (expressed in dollars) of each pay grade by the midpoint (in dollars) of the previous pay grade
d. It is the difference between the maximum and the minimum pay level, in dollars, for a given pay range.

1 points

QUESTION 18

In order to establish a midpoint of the pay range you must first convert the market line into a pay line policy.

True

False

1 points

QUESTION 19

Which of the following takes place once the job evaluation system has been finalized?
a. compensable factors are weighed
b. all jobs are scored
c. factor degrees are analyzed
d. factor weightings are measured

1 points

QUESTION 20

What is a disadvantage of having very narrow pay grades?
a. The only way for an employee to significantly increase their wages is through a promotion.
b. It makes seniority systems redundant.
c. The reliability of the pay grade is low.
d. The internal stability of the pay grade is low.

odoug

BUSINESS MANAGEMENT Lecture Notes - Lecture 3: Financial Statement

Document Summary

Get access

Related Documents

ACCT 2101 Lecture Notes - Lecture 3: Accrual, Deferral, Trial Balance

ACC 210 Lecture Notes - Lecture 3: Deferral, Revenue Recognition, Accrual

ACCT 201 Lecture Notes - Lecture 4: Retained Earnings, Income Statement, Financial Statement

Related Questions