PlastiPharm would want to perform the additional testing because:
- The additional testing helps the company as it strives for perfection in its products and helps avoid future problems by reducing waste (defective parts). (Option C)
- Testing all the parts addresses any questions that customers might have about quality or performance of materials. (Option D)
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Why do manufacturers carry out testing?</h3>
Rigorous testing is usually carried out by companies to ensure that defects and hazards are detected before the products are sent out into the market.
This way, their liability from product defects is reduced or eliminated completely.
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Answer:
scarcity, tradeoffs, efficiency, and opportunity costs.
Answer:
1. The measures that City Bus Risk Manager should take in the risk management process are as follows
Figure out the risk context: In this case, we need to find out which market City Bus is catering to and what sort of service it can provide. The risk manager will take into account what the business requirements are, what are the technical criteria for delivering this service, such as the legal regulations that City Bus has to follow.
Using the allowance method, is bad debt expense recognized in the period in which sales related to the uncollectible account are made.
One of the most typical types of bad debt is credit card debt. Lenders issue credit cards, which let you make purchases on credit. These credit cards frequently have exorbitant interest rates that can soon become out of control.
Bad debt costs are typically listed on the income statement as a sales and general administrative expenditure. Accounts receivable on the balance sheet are reduced when bad debts are recognized, but firms still have the right to collect money if the situation changes.
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