During 2020, Odyssey Co

question 84

Multiple Choice

During 2020, Odyssey Co. sold inventory to its wholly-owned subsidiary, Civic Co. The inventory cost $40,000 and was sold to Lord for $58,000. For consolidation reporting purposes, when is the $18,000 intra-entity gross profit recognized?

• A) When goods are transferred to a third party by Civic.
• B) When Civic pays Odyssey for the goods.
• C) When Odyssey sold the goods to Civic.
• D) When Civic receives the goods.
• E) No gain can be recognized since the transfer was between related parties.

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Definitions:

Empowerment

The process of giving employees autonomy, resources, and encouragement to make decisions and solve problems on their own.

Job Enrichment

Refers to designing or modifying jobs to include a greater range of tasks and responsibilities, which can increase job satisfaction and performance by making work more meaningful.

Job Characteristic

An attribute or feature of a job that affects the attitudes and behaviors of the employees, such as task variety, autonomy, and feedback.

Job Enrichment

A process that enhances job satisfaction by integrating meaningful and fulfilling tasks into an employee's role.