Accruals arise automatically from a firm's operations and are "free" capital in the sense that no explicit interest must normally be paid on accrued liabilities.
Answer the following statement true (T) or false (F)
True
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The primary advantage of laboratory experiments is that they allow the researcher to control the effects of extraneous variables
Indicate whether the statement is true or false
Medina Enterprises The following selected financial information is available for Medina for the year ended December 31, 2012. Net sales $450,000 Inventory, 1/1/12 $48,400 Cost of goods sold 299,500 Inventory, 12/31/12 49,670 Refer to the information provided for Medina Enterprises. What is the inventory turnover ratio for 2012?
A) 6.188 times B) 6.030 times C) 6.108 times D) 9.177 times
Under a just-in-time manufacturing system, large quantities of inventory are accumulated throughout the factory to be certain that components are available each time that they are needed.
Answer the following statement true (T) or false (F)
A company produces 300 microwave ovens per month, each of which includes one electrical circuit
The company currently manufactures the circuit in-house but is considering outsourcing the circuits at a contract cost of $34 each. Currently, the cost of producing circuits in-house includes variable costs of $28 per circuit and fixed costs of $5,000 per month. The controller says that they could outsource production of the circuit, if it reduces fixed cost more than $1,800 per month. Is this statement true or false? Indicate whether the statement is true or false