Which of the following statements is incorrect?
A. Capital budgeting focuses on short-term planning.
B. Capital budgeting involves decisions as whether to buy or lease equipment.
C. Cash outflows for capital budgeting will appear on the cash budget.
D. Capital budgeting affects the master budget because it considers what assets a company should have and use when achieving its budgets.
Answer: A
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JKL Distribution struggled to make profits for a few years, but eventually, the company had a very profitable year. Should the CEO raise salaries or give employees bonuses to reward them and motivate them to continue meeting company goals? Explain why.
What will be an ideal response?
Mae is granted immunity after she agrees to testify about a crime. Mae has an absolute privilege against self-incrimination and
a. can be prosecuted only for a crime about which she agreed to testify. b. cannot be prosecuted for any crime. c. cannot refuse to testify on Fifth Amendment grounds. d. can refuse to testify on Fifth Amendment grounds.
Rediger Inc., a manufacturing Corporation, has provided the following data for the month of June. The balance in the Work in Process inventory account was $22,000 at the beginning of the month and $17,000 at the end of the month. During the month, the Corporation incurred direct materials cost of $55,000 and direct labor cost of $28,000. The actual manufacturing overhead cost incurred was $53,000. The manufacturing overhead cost applied to Work in Process was $51,000. The cost of goods manufactured for June was:
A. $136,000. B. $141,000. C. $139,000. D. $134,000.
The impact on net operating income of a small change in sales for a segment is best predicted by using:
A. the ratio of the segment margin to sales. B. net sales less segment fixed costs. C. the contribution margin ratio. D. the segment margin.