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NEW QUESTION: 1
An entity introduced a new product that carries a 2-year warranty against defects. It estimates that warranty costs will be 27, of sales in the year of sale and 3% of sales in the year following the year of sale. Sales in Year 1 and US $5 million and US $7 million, respectively, Actual costs of servicing the warranty in Year 1 and Year 2 were US $110,000 and US $260.000, respectively. What provision for warranty costs must the entity Year 2?
A. US $350.000
B. US $290.000
C. US $370.000
D. US $260.000
Answer: A
Explanation:
The warranty provision must be matched with revenue in the year of sale. Thus, the provision related to Year 2 sales must be recognized in Year 2 even if actual expenditures will not occur until Year 3_ The provision related to Year 2 sales equals US $350,000 [$7,000,0002% for the year of sale -- 3% for the year after the year of sale)].

NEW QUESTION: 2
What are the default Hello and Dead timer intervals for OSPF on the Nokia 7750 SR?
A. 10 and 30 seconds
B. 5 and 20 seconds
C. 10 and 40 seconds
D. 5 and 15 seconds
Answer: C

NEW QUESTION: 3
Which characteristic distinguishes a project from regular business operations?
A. Produces benefits
B. Manages stakeholders
C. Introduces business change
D. Incurs cost
Answer: C