According to the theory of constraints, which of the following is a financial measurement that can be used to measure the firm's ability to make money?
A. Inventory
B. Operating expenses
C. Sales
D. Dividends
E. Cash flow
Answer: E
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Which of the following correctly describes the accounting treatment for interest payable?
A) It is shown on the balance sheet as a current liability. B) It is shown on the income statement as an operating expense. C) It is shown on the balance sheet as a current asset. D) It is shown on the balance sheet as a long-term liability.
Which of the following statements about quality costs is true?
A) Even in theory, external failure costs can never be reduced to zero. B) The less a company spends on prevention costs, the less they will have to spend on internal failure costs in the future. C) If a company produces and sells a defective product, external failure costs are likely to exceed all the other types of quality costs. D) A low level of internal failure costs usually indicates that more attention needs to be paid to prevention and appraisal costs.
The knowledge workers of an organization:
A. identify more strongly with their organization than they do with their profession. B. often believe they have the right to work autonomously. C. require little or no specialized training. D. include blue-collar workers.