Discretionary costs are often difficult to control because
a. it is difficult to measure the cost.
b. they cannot be changed in the short run.
c. they cannot be changed from period to period.
d. it is difficult to measure the benefits of discretionary activities.
D
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With the biller direct method of an electronic bill presentment and payment (EBPP) system, a company posts its bills/invoices to its own Web site (or to a Web site hosted by a third party) and sends an e-mail notification to its customers telling them that their bill has been posted
Indicate whether the statement is true or false
Under the par value method of accounting for treasury stock, the treasury stock is reported on the balance sheet as a deduction from
A) the sum of contributed capital, other comprehensive income, and retained earnings. B) retained earnings. C) capital stock. D) contributed capital.
Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?
a. 0 b. 1 divided by the number of periods c. 0.5 d. 1.0
Which of the following statements is FALSE?
A) The levered equity return equals the unlevered return plus an extra "kick" due to leverage. B) By holding a portfolio of a firm's equity and its debt, we can replicate the cash flows from holding its levered equity. C) The cost of capital of levered equity is equal to the cost of capital of unlevered equity plus a premium that is proportional to the market value debt-equity ratio. D) If a firm is unlevered, all of the free cash flows generated by its assets are available to be paid out to its equity holders.