Which of the following statements is CORRECT?
A. Under current laws and regulations, corporations must use straight-line depreciation for all assets whose lives are 5 years or longer.
B. Corporations must use the same depreciation method for both stockholder reporting and tax purposes.
C. Using accelerated depreciation rather than straight line normally has the effect of speeding up cash flows and thus increasing a project's forecasted NPV.
D. Using accelerated depreciation rather than straight line normally has no effect on a project's total projected cash flows nor would it affect the timing of those cash flows or the resulting NPV of the project.
E. Since depreciation is a cash expense, the faster an asset is depreciated, the lower the projected NPV from investing in the asset.
Answer: C
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Answer the following statement true (T) or false (F)
Normal time equals the average observed time multiplied by the allowance factor
Indicate whether the statement is true or false
Which of the following is an example of the developing skills of successful managers?
A. Checking on the progress and quality of work B. Being considerate C. Providing coaching and advice D. Providing praise and recognition for effective performance
Herrod Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $570 per month plus $98 per job plus $24 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in December to be 11 jobs and 98 meals, but the actual activity was 14 jobs and 102 meals. The actual cost for catering supplies in December was $4,500. The spending variance for catering supplies in December would be closest to:
A. $500 U B. $500 F C. $110 U D. $110 F