ABC Corporation Owns 75 Percent of XYZ Company's Voting Shares

question 17

Multiple Choice

ABC Corporation owns 75 percent of XYZ Company's voting shares.During 2008,ABC produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to XYZ for $90 each.XYZ sold 18,000 of the chairs to unaffiliated companies for $117 each prior to December 31,2008,and sold the remainder in early 2009 for $130 each.Both companies use perpetual inventory systems.
-Based on the information given above,what amount of cost of goods sold must be eliminated from the consolidated income statement for 2008?

• A)$2,765,000
• B)$1,620,000
• C)$1,422,000
• D)$2,963,000

Recognize appropriate situations for implementing the direct close method.

Describe the characteristics and appropriate use of the question close.

Learn the strategic application of the compliment close in dealing with various types of customers.

Evaluate the effectiveness of summary-of-benefits and continuous-yes closes.

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Definitions:

Distinctives

Features or characteristics that clearly differentiate one entity, product, or service from others.

Strategic Sourcing Process

A methodical approach to procurement that focuses on developing supply chains for critical goods and services to reduce costs and improve quality.

Six Sigma

A set of techniques and tools for process improvement aimed at reducing defects and improving quality.