When Greenlawn Inc

question 25

Multiple Choice

When Greenlawn Inc.finds itself losing contracts because Lo-Price Lawn Co.charges less money,Greenlawn responds by lowering its bids.This reaction demonstrates ________.

• A)the invisible hand of competition
• B)collision
• C)the right to private property
• D)social responsibility

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Definitions:

Net Realizable Value Method

An accounting method used to value an asset at the estimated selling price in the ordinary course of business, minus estimated costs of completion, disposal, and transportation.

Sequential Method

A cost allocation method where support departments' costs are allocated to production departments in a specific order, that somewhat reflects the level of services provided among support departments.

Support Departments

Units within an organization that provide essential services or support to the operational departments but do not directly participate in the primary activity of the business.

Proportional Usage

The allocation of costs, resources, or time in direct relation to the amount of goods or services produced or consumed.