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Bruges Electronics Inc

question 27

Multiple Choice

Bruges Electronics Inc. offers one model of laptop computer for £1000 and a two-year warranty for £250. The retailer, as part of a Boxing Day promotion, offers a limited-time offer for the laptop, including delivery and the two-year warranty for £1,180. The cost of the computer to Bruges is £700. Any warranty repairs are assumed to be done ratably over time. Bruges accounts for transactions using the customer consideration model. In the first twelve months following the sale, Bruges incurred £980 of costs servicing the computers under warranty.
In the first twelve months, Bruges would record warranty expense of

Comprehend the legal frameworks governing corporations, including the Statutory Close Corporation Supplement, the Revised Act, and the Dodd-Frank Act.

Recognize the legal requirements and procedures for shareholder agreements, voting, and meetings.

Distinguish between the rights and duties of shareholders, directors, and officers, including fiduciary duties.

Identify the implications of corporate actions on shareholder rights, including derivative suits and executive compensation.

Definitions:

Economical

Characterized by efficiency and avoidance of waste; making prudent use of resources.

Holding Cost Rate

The cost associated with keeping inventory in storage, including warehousing, insurance, depreciation, and opportunity costs, usually expressed as a percentage of inventory value per unit of time.

Economical

Pertaining to the efficient use or management of resources to achieve a goal without wasteful expenditures.

Inventory Held

Refers to the stock of goods or materials that a company keeps on hand to meet demand.