Ratios provide little information unless the analyst places them in a context. After calculating the ratios, the analyst must compare them with some standard. Which of the following is/are possible standard(s)?
a. The planned ratio for the period.
b. The corresponding ratio during the preceding period for the same firm.
c. The corresponding ratio for a similar firm in the same industry.
d. The average ratio for other firms in the same industry.
e. All of the above are possible standards.
E
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When preparing the statement of cash flows using the indirect method, the payment of dividends would appear as
a. a decrease in the operating activities section b. an increase in the operating activities section c. a use of cash in the financing activities section d. a source of cash in the financing activities section
Cost of goods manufactured is equal to
A) Direct Materials + Direct Labor + Overhead. B) Beginning Work in Process Inventory + Total Manufacturing Costs - Ending Work in Process Inventory. C) Beginning Work in Process Inventory + Period Costs - Ending Work in Process Inventory. D) Beginning Work in Process Inventory + Product Costs.
Answer the following statements true (T) or false (F)
1. Organizations are exclusively a human phenomenon. 2. The reasons for change are usually clear and easily definable. 3. Simply announcing a new vision does not mean there will be significant change in the organization. 4. Middle managers and employees at all levels should work to change organizational goals and objectives rather than relying on senior leadership.
‘Managing will rarely if ever correspond with the management presumed in rational plans and principles.’ Why should this be the case, according to the textbook?
What will be an ideal response?