Non-value-added activities are made up of activities avoidable in the short-run and activities unavoidable in the short-run due to current technology or production methods
Indicate whether the statement is true or false
true
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The number of servers, c, in a multiple-server queuing system must be greater than the average queue length
Indicate whether this statement is true or false.
The production manager of a company, in an effort to gain a promotion, negotiated a new labor contract with the factory employees that required them to bear a greater percentage of benefit costs than before, thus bringing down the cost of direct labor to
the company. Shortly afterward, several experienced and highly skilled workers resigned, and were replaced by new employees whose work was very slow during their training period. At the end of the quarter, the company's profits fell 10%. This would produce a(n) ________. A) unfavorable direct materials cost variance B) favorable direct labor cost variance C) favorable direct labor efficiency variance D) unfavorable direct materials efficiency variance
Social events are an appropriate way to celebrate team successes.
Answer the following statement true (T) or false (F)
Which of the following statements is CORRECT?
A. The cost of capital used to evaluate a project should be the cost of the specific type of financing used to fund that project, i.e., it is the after-tax cost of debt if debt is to be used to finance the project or the cost of equity if the project will be financed with equity. B. The after-tax cost of debt that should be used as the component cost when calculating the WACC is the average after-tax cost of all the firm's outstanding debt. C. Suppose some of a publicly-traded firm's stockholders are not diversified; they hold only the one firm's stock. In this case, the CAPM approach will result in an estimated cost of equity that is too low in the sense that if it is used in capital budgeting, projects will be accepted that will reduce the firm's intrinsic value. D. The cost of equity is generally harder to measure than the cost of debt because there is no stated, contractual cost number on which to base the cost of equity. E. The bond-yield-plus-risk-premium approach is the most sophisticated and objective method for estimating a firm's cost of equity capital.