One challenge corporations face in implementing CR initiatives is how to evaluate and approve CR strategy decisions. Describe two schools of thought on how to accomplish this.
What will be an ideal response?
One school of thought argues that these opportunities should be evaluated using traditional frameworks, such as discounted cash flows, net present value, or internal return on revenue, and only be approved if they pass these hurdles. Meanwhile, others argue that CR strategies have larger effects that are less easily measured but are still important for the company (such as the small likelihood but enormous impact of a scandal related to CR failure). Those on this side of the conversation argue that you should use traditional tools, but that the intangibles should also be considered.
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A) Accuracy B) GAAP C) historical and estimated data D) reports prepared as needed
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A. Use of standard hours versus actual hours. B. Use of a predetermined overhead rate. C. Use of a standard rate versus an actual rate. D. The choice of an activity measure. E. There is no difference.
Which of the following budgets are prepared before the sales budget? Budgeted Income StatementDirect Labor BudgetA)YesYesB)YesNoC)NoYesD)NoNo
A. Choice A B. Choice B C. Choice C D. Choice D