Scenario 6.2 Use the Following to Answer the Questions

question 184

Multiple Choice

Scenario 6.2
Use the following to answer the questions.
GE Transportation produces locomotive engines for sale in countries around the world.After looking at the total market for locomotive engines,the company found that various rail lines wanted different types of engines.Major rail lines in the U.S.and South America wanted engines to haul heavy freight.Rail lines in Sweden and Germany were interested in a cleaner,greener locomotive engine.Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country.GE Transportation is currently manufacturing its GE 4400 for heavy freight,its Hybrid Eco-Engine,and its Dash 9,suited for shortline transport.
-Refer to Scenario 6.2.If a GE Transportation researcher analyzes monthly sales data for a four-year time frame,looking for periodic fluctuations,the researcher is doing a ____ analysis.

• A)trend
• B)seasonal
• C)cycle
• D)random factor
• E)regression

Estimate inventory cost using the gross profit method.

Distinguish between FOB shipping point and FOB destination and its impact on inventory valuation.

Analyze the effects of consigned goods on inventory accounts.

Understand how merchandise returns from customers are recorded in accounting.

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Definitions:

Reporting Issuer

A company whose securities are traded on a stock exchange and must regularly disclose financial and other significant information.

Shares

Units of ownership interest in a corporation or financial asset, providing an equitable distribution of profits, if any, in the form of dividends.

Takeover Bids

Proposals or offers made by one company to purchase a controlling stake in another company.

Securities Regulation

Legal framework governing the issuance, trading, and overall market behavior of securities to protect investors, maintain fair markets, and ensure capital formation.