Scenario - Jenkins and Jones Corporation Michael Jenkins and Emma

question 57

Multiple Choice

Scenario - Jenkins and Jones Corporation Michael Jenkins and Emma Jones started the Jenkins and Jones Corporation in 1976 in Kansas, USA.  The initial goal of this company was to serve customers throughout the United States.  Since the company's inception it has grown at an outstanding rate.  It now serves online customers as well as customers in ten foreign nations.  Jenkins and Jones is now looked at as the industry's benchmark company due to its superior supply chain management skills.  Its practices and techniques are used by many other organizations in the industry to improve their own supply chain management skills. If Jenkins and Jones would decide to maintain its product production on a domestic basis, there would be certain advantages the company could expect from making this decision.  Which one of the following would not be considered an advantage of domestic production?

• A)Better control over costs
• B)Better control over quality
• C)Do not have to face competition  
• D)Better control over deliveries
• E)Knowledge of the product provides efficiency advantages

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Definitions:

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Balance Sheet Account

An account found on the balance sheet, which is one of the three principal financial statements; these accounts include assets, liabilities, and shareholders' equity.

Depreciation Expense

The portion of the cost of an asset that is allocated as an expense over its useful life, reflecting the decrease in value over time.

Overstate Assets

Reporting a company's assets at a value higher than their actual worth, which can inaccurately represent financial health.