Which of the following is not true about production departments?
a. They perform the actual manufacturing operations that physically change the units being produced.
b. Since they receive the benefit of work performed by service departments, service department costs should be distributed to them.
c. The cost of production departments should be distributed to other production departments that benefit from their operations.
d. Machining and painting would be examples of production departments.
c
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Assume that the risk-free rate remains constant, but the market risk premium declines. Which of the following is most likely to occur?
A. The required return on a stock with beta = 1.0 will not change. B. The required return on a stock with beta > 1.0 will increase. C. The return on "the market" will remain constant. D. The return on "the market" will increase. E. The required return on a stock with a positive beta < 1.0 will decline.
Accruals are "spontaneous" funds arising automatically from a firm's operations, but unfortunately, due to law and economic forces, firms have little control over the level of these accounts.
Answer the following statement true (T) or false (F)
One of the problems of workers' compensation laws is that the laws give employers less incentive to invest in work-site safety
a. True b. False Indicate whether the statement is true or false
Explain the concept of postponement and provide an example of it