Which of the Following Is Not a Commitment Device Used

question 9

Multiple Choice

Which of the following is not a commitment device used to overcome a commitment problem?

• A)A non-refundable advance payment to reserve a room at a resort.
• B)A manufacturer's 2-year agreement to fix,at no cost to you,anything that breaks on your computer.
• C)A pre-nuptial agreement that provides for a large penalty in the event a spouse has an affair.
• D)High fines for illegal parking on campus.

Grasp the necessity of ensuring total debits and credits are equal in a columnar journal before posting.

Identify the appropriate journal for recording various types of transactions.

Define and understand the concept of a business segment.

Recognize the differences in the sales journal under perpetual and periodic inventory systems.

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Definitions:

Carrying Costs

Expenses associated with maintaining inventory, including storage, insurance, and spoilage costs.

Ordering Costs

Expenses incurred in placing and receiving orders for goods, including transportation, handling, and clerical costs.

Option Contract

A financial derivative that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price within a specified timeframe.

Futures Contract

A forward contract with the feature that gains and losses are realized each day rather than only on the settlement date.