Why is managerial judgement essential to predicting cost behavior?
Managerial judgement is important because estimated statistical results often require refinement. A manager has intimate knowledge of the various costs of his/her organization and may need to revise the statistical results by taking into consideration projected changes in cost structure or technology.
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Which of the five behavioral sciences related to organizational behavior studies people and their activities in relation to societal, environmental, and cultural influences?
A. political science B. sociology C. social psychology D. anthropology
Variable costing is utilized to evaluate the performance of
a. investment centers. b. revenue centers. c. discretionary cost centers. d. profit centers.
A company is using the concept of leverage or trading on equity, when it borrows money from creditors in order to earn additional income in excess of the interest cost and thereby increases the rate of return to the common stockholders
Indicate whether the statement is true or false
The payback period ignores the time value of money and therefore should not be used as a
screening device for the selection of capital budgeting projects. Indicate whether the statement is true or false