The Time a Company Spends Responding to Customer Requests Which

question 93

Multiple Choice

The time a company spends responding to customer requests which can be reduced by identifying the activities that consume the most resources and making them more efficient,and by identifying non-value-added activities,which the firm can eliminate,is called

• A)company response time.
• B)customer response time.
• C)rapid response time.
• D)vendor response time.

Recognize how to account for non-controlling interests (NCI) under various consolidation methods.

Identify the treatment of contingent consideration in business combinations.

Understand the treatment of negative goodwill and acquisition differentials in consolidated financial statements.

Comprehend the effects of business combination transactions on consolidated balance sheets, particularly regarding goodwill.

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Definitions:

Time Value

The principle that money currently in hand is valued higher than an identical amount received in the future, owing to its capacity to generate earnings.

Accounting Rate of Return

A financial ratio that measures the expected profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.

Initial Investment

The amount of money used to start a project, purchase assets, or invest in securities, which is used as a basis for evaluating the potential profitability of the investment.

Discounting

A financial technique that calculates the present value of future cash flows by applying a discount rate.