Which of the following are assumptions or requirements of transportation problems?
I. Goods are the same from each source.
II. There must be a single source.
III. Minimum quantities must be shipped.
IV. Shipping costs per unit do not vary with the quantity shipped.
A) I and III
B) I, II, and IV
C) I and IV
D) II and III
Answer: D
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When a firm constructs its own buildings or equipment:
a. it recognizes the labor, material, and overhead costs incurred as an asset. b. U.S. GAAP and IFRS require firms to include, or capitalize, interest costs during construction in the cost of a self-constructed asset. c. it recognizes the labor, material, and overhead costs incurred as a period expense. d. U.S. GAAP and IFRS require firms to expense interest costs incurred during construction of a self-constructed asset. e. both choices a and b are correct.
When resource constraints are added to technical constraints the original project network may change as well as the completion date.
Answer the following statement true (T) or false (F)
The statement of cash flows helps managers answer which of the following questions?
a. Will we have to borrow all the needed cash? b. If borrowing is necessary, can the debt be serviced? c. Can cash be raised by issuing additional capital? d. Can we purchase another company using available cash? e. All of the answers are correct.
Sarah invests $2,700 today in an account that pays 6 percent interest compounded annually. She wants to know the total balance in her account five years from today. Identify the correct keystrokes to be used in a financial calculator to determine the total balance.
A. N = 6, I/Y = 5%, PV = 2,700 B. N = 5, I/Y = 6%, FV = -2,700 C. N = 5, I/Y = 6%, PV = 2,700 D. N = 5, I/Y = 6%, FV = 2,700 E. N = 5, I/Y = 6%, PV = -2,700