Kisa Is a Production Manager at Western Widgets,Inc

question 159

Multiple Choice

Kisa is a production manager at Western Widgets,Inc.,a manufacturing corporation that sells its products worldwide.Thanks in part to Kisa's efforts,Western Widgets has dramatically improved the quality of its products.Kisa believes that the high quality of its output will give Western Widgets a competitive edge.Kisa's view is:

• A)correct.Producing high quality goods is the key to success in the competitive marketplace.
• B)not wrong,but it is too limited.Consumers demand high quality goods,along with competitive prices and outstanding service.
• C)incorrect.The typical consumer is more interested in price than quality.
• D)not exactly correct.The best strategy for market success is to develop new products quickly and get them to the market before the competition,even if quality suffers a bit.

Identify the components and purposes of accounts found in the chart of accounts.

Distinguish between asset, liability, and equity accounts and their normal balances.

Understand the role of revenue and expense accounts in determining business profitability.

Recognize the importance of proper documentation and the timely recording of transactions.