Answer the following statements true (T) or false (F)
1. Commercial finance companies usually charge a higher interest on secured short-term loans than commercial banks because the finance companies generally ends up with higher-risk borrowers.
2. The interest rate charged on secured short-term loans is always equal to the rate on unsecured short-term loans
3. The outright sale of accounts receivable at a discount in order to obtain funds is called pledging accounts receivable.
4. One advantage of factoring accounts receivable is the ability it gives a firm to turn accounts receivable immediately into cash without having to worry about repayment.
5. The higher cost of unsecured as opposed to secured borrowing is due to the greater risk of default.
1. TRUE
2. FALSE
3. FALSE
4. TRUE
5. FALSE
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Mary's Fine Fashions Mary's Fine Fashions manufactures and sells various types of women's clothing. At the end of 2011, Mary had estimated for the production and sale of 25,000 short-sleeve shirts. Each shirt has a standard calling for 2.5 yards of direct material at a standard rate of $1.25 per yard and 12 minutes of direct labor time at a standard rate of $.20 per minute. During 2012, the
company actually produced and sold 23,000 shirts. These 23,000 shirts had an actual direct materials cost of $77,142 (59,340 yards at $1.30 per yard) and an actual direct labor cost of $63,250 (253,000 minutes at $.25 per minute). Each shirt sells for $20. Refer to the Mary's Fine Fashions information above. What is Mary's flexible budget variance? A) $14,475 F B) $28,950 U C) $42,267 F D) $13,317 U
A limited partner who actively participates in the management of the partnership can be held
liable as a general partner. Indicate whether the statement is true or false
When choosing the most viable solution to resource conflict issues, the BEST option is the one that:
A) Minimizes total network slack. B) Minimizes total network schedule disruption. C) Maximizes total network slack. D) Maximizes activity late start times.
Branding decisions should be based on two questions: "Where will the brand be used?" and "How much should be spent on branding?"
Answer the following statement true (T) or false (F)