For purchases of capital goods such as manufacturing equipment, many U.S. buying organizations now use _____ to analyze purchasing decisions, including trade-in or future estimated salvage value.
A. total costing
B. activity-based costing
C. life-cycle costing
D. e-procurement
Answer: C
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Control is the process of monitoring the company's operations to determine whether the company's objectives are being achieved. Effective control is achieved through all of the following except:
A. periodically measuring and comparing company results. B. assigning responsibility for costs to employees responsible for those costs. C. constantly monitoring employees to ensure they do exactly as they are told. D. taking necessary corrective action when variances warrant doing so
Windy City Kite Company has prepared sales forecasts for the first quarter of Year 3 as shown in the top row of the table. Half of Windy City's kite sales are cash and the other half are credit
Windy City collects credit sales the month following the credit sale. How much of the total January collections from customers are from January sales? Windy City Kite Company Sales Forecast and Collections Forecast December January February Sales Forecast $1,100 $1,000 $2,000 Cash Collections Collections from Sales last month Total Cash Inflows A) $0 B) $500 C) $750 D) $1,000 E) $1,050
Speculative risk involves only a chance of loss
Indicate whether the statement is true or false
At Rost Corporation, indirect labor is a variable cost that varies with direct labor-hours. Last month's performance report showed that actual indirect labor cost totaled $7,540 for the month and that the associated spending variance was $560 F. If 10,800 direct labor-hours were actually worked last month, then the flexible budget cost formula for indirect labor must be (per direct labor-hour) closest to:
A. $0.85 B. $0.65 C. $0.75 D. $0.80