In Freeman V

question 349

Multiple Choice

In Freeman v.San Diego Assn.of Realtors,most of the real estate Multiple Listing Services joined together to provide their service to real estate agents.The association charged all realtors the same price.When challenged as price fixing,the appeals court held that:

• A)the association was not engaged in illegal price fixing because it was not charging more for the same services than the most efficient association
• B)the association was not engaged in illegal price fixing because it made the industry more efficient
• C)the association itself was illegal
• D)the association was engaged in illegal price fixing,but it was improving the industry's efficiency so it could be overlooked
• E)none of the other choices are correct

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Definitions:

Adjusting Journal Entry

A journal entry made at the end of an accounting period to record any unrecognized income or expenses for that period.

Cost of Goods Sold

This measure reflects the total costs involved in manufacturing or purchasing products that a company sells during a period, impacting gross profit and business strategy planning.

Applied Overhead

The amount of factory overhead costs allocated to individual units of production, based on a predetermined rate.

Actual Overhead

The real expenses incurred during a period for indirect costs, differing from budgeted or estimated overhead.