What is the Rule of 72? Why do you think the Rule of 72 came into widespread use? Give an example of where you think the rule could be useful
What will be an ideal response?
Answer: The Rule of 72 is a quick method for estimating the amount of time necessary to double your money given a rate of return or, conversely the return required to double your money, given a particular time period. The rule developed prior to calculators and computers and served as a useful technique to estimate values for commodities and securities. The student should be able to identify a situation where it would be important to know the time or rate necessary to double the value of an investment.
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It may be difficult to forecast sales for firms with _________________________ patterns because their historical growth rates reflect wide variations in both direction and amount from year to year
Fill in the blank(s) with correct word
A work center is ______.
A. a part of a production facility where all activities related to particular phase of the production process (such as assembly, milling, and grinding) are performed B. where repetitive activities related to production are performed C. the location within a production facility where high-skilled workers complete a specific task in production D. the central area in a production facility for planning work requirements
Special orders should only be considered if unused capacity exists
Indicate whether the statement is true or false
The weakness of a negotiated transfer price is that cost recovery is guaranteed to the selling division, which may lead to failure to detect inefficient operating conditions and excessive cost incurrence
Indicate whether the statement is true or false