Cavalier Tool and Manufacturing Decided Not to Pursue ISO Certification

question 29

Multiple Choice

Cavalier Tool and Manufacturing decided not to pursue ISO certification because

• A)They could not afford the cost associated with certification.
• B)They had attempted certification a few years earlier and it had been unsuccessful.
• C)Sometimes a customer required a "down and dirty" mold which would not be allowed under ISO certification.
• D)The owner was not interested in certification.

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Definitions:

Periodic Inventory Method

An accounting method that updates inventory levels and cost of goods sold at the end of a financial period rather than after each sale.

Voucher Payment

A method of payment where documentation is used to authorize and record a payment transaction.

Discount Period

The time frame in which a payment made towards a purchase is eligible for a discount, typically to encourage early payments.

Financial Statement

An official document detailing the financial transactions and status of a company, person, or different entity.