On a practical basis a, manager should always accept all positive NPV projects even if this means exceeding a limited budget
Indicate whether the statement is true or false.
Answer: FALSE
Explanation: On a practical basis, a manager should accept the combination of positive NPV projects that maximizes the total NPV while still operating within budget.
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On February 3, Smart Company sold merchandise in the amount of $1800 to Truman Company, with credit terms of 1/10, n/30. The cost of the items sold is $1240. Smart uses the perpetual inventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is:
A.
| Cash | 1720? | |
| Sales discounts | 12? | |
| Accounts receivable | 1732.00? |
B.
| Cash | 1800? | |
| Accounts receivable | 1800? |
C.
| Cash | 1782.00? | |
| Sales discounts | 18? | |
| Accounts receivable | 1800? |
D.
| Cash | 1240? | |
| Accounts receivable | 1240? |
E.
| Cash | 1160? | |
| Accounts receivable | 1160? |
Which practical tool was created to analyze and interpret the four kinds of change conversations?
a. manager’s handbook b. discussion inventory c. conversational profile d. gap analysis
In a bilateral contract, the offeree's promise is the acceptance
Indicate whether the statement is true or false
The activity-based costing system
A) is the most appropriate method of cost accounting for rigid hierarchical organizations. B) effectively departmentalizes an organization based on its core functions, such as human resources and maintenance. C) provides a more accurate picture of how costs should be charged to products and services. D) assumes that organizations are bureaucratic "machines" that can be separated into component functions. E) fails to allocate costs across business processes and is less effective than traditional methods of cost accounting.