Bob Neal and Jon Smelky Own a Large Cabinet-Making Company

question 15

Multiple Choice

Bob Neal and Jon Smelky own a large cabinet-making company in Alabama.Their CPA advised them that they needed to develop another source of income as well as increase the efficiency of the organization if they wanted to continue making a profit.Neal's wife overheard this conversation and suggested the men do something with the wood wastes that the cabinet-making process produces.Shortly after Neal attended a trade show where he learned that the company's discarded wood slabs could be used to build wooden pallets.The company would need to invest about $45,000 as startup costs.Meanwhile,Smelky investigated the possibility of turning their wood scraps into mulch and selling it to a gardening supply wholesaler.Costs for this project were estimated at about $33,000.Neal and Smelky met with their three crew supervisors to see which method they should adopt.The crew supervisors voted for pallet making.Neal and Smelky began looking for a supplier.
-What role did the three crew supervisors play in the decision to buy pallet-making equipment?

• A)Gatekeeper,influencer and decider
• B)User,influencer,gatekeeper and initiator
• C)Decider,influencer and buyer
• D)User and influencer
• E)Buyer,user,decider and influencer

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Definitions:

Cash Disbursements

Outflows of cash for expenses, or payments made by a business during a specific period, such as paying suppliers, employees, or other expenditures.

Financial Statements

Consolidated documents that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.

Errors

In accounting, errors refer to mistakes made in recording, classifying, or summarizing financial transactions and statements.

Credit Sales

Sales transactions where the payment is deferred to a future date, typically allowing the buyer to purchase goods or services on credit.