Line Organizations Follow Fayol's Traditional Management Rules

question 207

True/False

Line organizations follow Fayol's traditional management rules.

Understand the conditions under which companies can change accounting methods.

Comprehend the benefits and criticisms of fair value accounting.

Identify the origin and purpose of accounting standards codification.

Understand the influence of political considerations on accounting standard-setting in the U.S.

---

Definitions:

Merchandise Inventory Account

An account that tracks the cost of goods available for sale to customers during an accounting period.

Service Businesses

Companies that earn revenue primarily through providing intangible products, such as services or expertise, rather than selling physical goods.

Merchandising Business

A type of business that purchases products from other businesses and sells them to customers.

FOB Shipping Point

A term used in shipping contracts to indicate that the buyer is responsible for the goods and their transportation costs as soon as they leave the seller's premises.