Flexible budgets can be used when there is more than one cost driver (i.e., measure of activity).
Answer the following statement true (T) or false (F)
True
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You are faced with a work-related ethical dilemma. In deciding what action to take, you would:
a. Check the company code of ethics to see if the action is prohibited. b. Check legal implications and the company code of ethics, and then decide if the action is personally ethical. c. Check with colleagues to see if they would take the action. d. Check the legal implications and feel free to take the action if it is not illegal.
A trader uses a stop-loss strategy to hedge a short position in a three-month call option with a strike price of 0.7000 on an exchange rate. The current exchange rate is 0.6950 and value of the option is 0.1
The trader covers the option when the exchange rate reaches 0.7005 and uncovers (i.e., assumes a naked position) if the exchange rate falls to 0.6995 . Which of the following is NOT true? A. The exchange rate trading might cost nothing so that the trader gains 0.1 for each option sold B. The exchange rate trading might cost considerably more than 0.1 for each option sold so that the trader loses money C. The present value of the gain or loss from the exchange rate trading should be about 0.1 on average for each option sold D. The hedge works reasonably well
A cost accountant wished to establish the average amount, ?, spent by executives per day on travel and lodging. Then a comparison, between the average and the amount turned in to be reimbursed, will be made and unreasonably high or low expense amounts
audited. A random sample of 50 executive expense receipts is taken. The average in the sample was $208 . From a similar survey the standard deviation of the amounts is approximately ? = $29 . The accountant prepares a 90-percent confidence level for ?. How would the auditor use these data to determine if an audit should be conducted?
The statement of cash flows relies on a fundamental principle of double-entry bookkeeping; namely, the change in the cash balance must equal the change in total liabilities and stockholders' equity.
Answer the following statement true (T) or false (F)