Answer:
The correct answer is letter "C": a tie-in sale.
Explanation:
A tie-in sale is one where the purchase or rent of an object is only possible if another is also bought. Companies tend to use this practice to offer goods and services in bundles where all the products being sold are not necessarily of interest to the buyer but generates more profit or the seller.
Ngai Nhung is the sales manager at Hung Technologies. At lunch with the company CEO, Ngai proudly announced that he had negotiated a <u>blanket purchase order</u> with a client that represented the customer's long-term commitment to buy components from Hung.
<u>Option: D</u>
<u>Explanation:</u>
Here Ngai announcement means that the firm's consumers with their suppliers are going to enable several distribution dates across a period of time, often structured to reap the benefits of fixed prices which showcase the long-term relation between firm and consumer, thus understood as a blanket purchase order.
It is basically utilized when expendable products are recurrently needed. Blanket orders are commonly used when a consumer purchases large amounts and receives special discounts. Calculating the predicted amount planned by the recipient of the commodity is the toughest part of getting an agreement.
Answer:
A.
Explanation:
The cost principle means that in accounting, any transaction is recorded at the historical purchase price.
A fair value is the amount at which an asset could be exchanged in an arm´s length transaction between knowledgeable and willing parties.
Revaluation of fixed assets is not allowed for GAAP.
An appreciated value is an increase in the value of an asset over time.
A market value is the price at which a product or service could be sold in a competitive, open market.
