Ads that (1) limit the power of acceptance to one offeree or a small number of offerees,(2) are highly specific about the nature and number of items offered for sale and what is requested in return,and (3) leave nothing further to be negotiated are considered to be ________.

A) offers
B) invitations to negotiate
C) invitations to offer
D) obligations

Which section of a report is used to support conclusions and recommendations?

A) Transition
B) Review
C) Close
D) Body
E) Introduction

Bailey Limited has discovered that the estimated useful life for a material depreciable asset is incorrect due to a change in the way the asset is being used. The correct accounting treatment for this event is to:

A) treat it as an error and adjust retrospectively.
B) disclose the change in the notes to the financial statements.
C) treat it as a change in an accounting estimate and adjust prospectively.
D) treat it as a change in an accounting estimate and adjust retrospectively.

Parker Company owns 83% of the outstanding stock of Tadeo Company. Parker Company is referred to as the

A) parent
B) minority interest
C) affiliate
D) subsidiary

Members of self-directed teams have jobs that are:

A) typically in services rather than production.
B) enlarged but not enriched.
C) enriched but not enlarged.
D) specialized with a high division of labor.
E) both enlarged and enriched.

The formula for cost of goods manufactured is:

A) raw materials plus direct labor minus overhead plus beginning work-in-process inventory plus ending work-in-process inventory.
B) raw materials minus direct labor plus overhead plus beginning work-in-process inventory plus ending work-in-process inventory.
C) beginning work-in-process plus total manufacturing cost minus ending work-in-process.
D) raw materials plus direct labor less overhead plus beginning work-in-process inventory less ending work-in-process inventory.

Which of the following results in an increase in the return on assets ratio?

A) A decrease in the total asset turnover ratio.
B) An increase in the net profit margin ratio.
C) Purchasing a building by signing a long-term mortgage payable.
D) Using cash to purchase land.

Briefly discuss the four key understandings necessary for successful formulation of compensation strategy.