Refer to the Scenario Below to Answer the Following Questions

question 120

Multiple Choice

Refer to the scenario below to answer the following questions.
Shanghai MaLing Meat Company contracts with several farmers to raise beef and pork for its meat-processing center. To guarantee freshness, Shanghai MaLing Meat Company relies on a vast distribution network. For delivery to local markets in Shanghai, it uses its own fleet of refrigerated trucks; delivery to these markets constitutes 65 percent of its business. For deliveries beyond Shanghai, it contracts with a refrigerated fleet that specializes in expediting smaller shipments. For faster delivery during peak times, the Company often uses its own trucks to deliver to the expedited fleet's consolidation point from its distribution warehouse in Shanghai. During the holiday season, however, several specialty distributors contract with the Company to package specialty meats in gifts boxes, then ship them directly to the recipients. For these specialty shipments within Suzhou and Shanghai, it uses its normal delivery mode. All other specialty shipments are shipped from its distribution warehouse via air, then the company contracts with expedited carriers in various cities to deliver to the recipients.
-Which of the following is one of Shanghai MaLing Meat Company's upstream partners?

• A) local grocers in China who sell the company's products
• B) Chinese farmers who raise beef and pork for the meat processing center
• C) the refrigerated fleet that expedites small shipments
• D) air carriers that take Shanghai MaLing's specialty shipments
• E) recipients of Shanghai MaLing's gift boxes

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Definitions:

Double-Declining-Balance Method

A method of accelerated depreciation which doubles the normal depreciation rate, reducing the value of an asset more quickly.

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in a linear fashion.

Asset Impairments

The reduction in the recoverable value of a fixed asset or goodwill below its book value, reflected in the financial statements as an expense.