What is a "trigger" and why is it important when planning contingencies?
Fill in the blank(s) with the appropriate word(s).
Answer will vary
A trigger is an event or point in time when the contingency plan will be implemented. It is not only important to know what you will do if a risk event actually occurs but at what point will it be implemented. This discourages implementing the plan too soon or waiting too long and potentially increasing the negative impact of the risk.
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Which of the following statements is true regarding the two allowance methods used to account for bad debts?
a. The percentage of net credit sales approach takes into account the existing balance in the Allowance for Doubtful Accounts account. b. The direct write-off method takes into account the existing balance in the Allowance for Doubtful Accounts account. c. The percentage of accounts receivable approach takes into account the existing balance in the Allowance for Doubtful Accounts account. d. The direct write-off method does a better job of matching revenues and expenses.
Compute the profit margin (rounded to nearest percent) for Titania Corporation's Investment center using the following information. Titania Corporation Total sales $1,600 Operating income $100 Average assets invested $900 Profit margin ? Asset turnover ? ROI?
A) 5% B) 6% C) 8% D) 13%
JAX Inc In early 2012, JAX Inc had budgeted for the production and sales of 5,000 units at a sales price of $15 per unit. The following information is available regarding the standard cost for each unit: Direct materials: 1.50 pounds at $2.50 per lb Direct labor: 30 minutes of assembly at $.20 per minute Actual results for 2012 were determined to be as follows: Number of units produced and sold:
5,600 units Sales revenue: $100,800 ($18 per unit) Direct materials cost: $ 22,848 (9,520 lbs purchased and used at $2.40 per lb) Direct labor cost: $ 38,192 (173,600 minutes at $.22 per minute) Refer to the JAX Inc information above. What was JAX Inc's direct materials price variance for 2012? A) $952 F B) $952 U C) $1,120 F D) $1,120 U
At the project level, all of the following are examples of oversight activities EXCEPT
A. Project selection. B. Audit and review lessons learned. C. Review status reports. D. Review project objectives. E. Track and assist the project to resolve bottlenecks.