The new, turn-around management team at AJ's Pizza intentionally overestimates significantly the amount of its write-downs of assets in order to record a nonrecurring loss in a period of already depressed income. What is this behavior called?

Question 8 options:

	Income smoothing
	Taking a big bath
	Arm's length sales
	Restructuring costs

The average cost inventory costing method is used by Hanover, Inc. Sales are $100,000, the number of units available for sale is 200, the number of units sold during the period is 150, and the average cost of the goods available for sale is $400 each. How much is gross profit for the company?

Question 10 options:

	$25,000
	$40,000
	$20,000
	$80,000