If disbursements are greater than receipts in anytime period, the entrepreneur must either borrow funds or have cash in a bank account to cover the higher disbursement. This is known as:
A. cost of goods sold.
B. negative cash flow.
C. selling expense.
D. variable cost.
Answer: B
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Jesse has a health care plan that provides him with coverage that allows him to be involved in making decisions to help lower costs. This plan typically includes insurance with a high deductible, a medical savings account, and ongoing health education. Which type of health care plan is Jesse using?
A. health maintenance organization B. preferred provider organization C. managed care D. consumer-driven health plan E. flexible health plan
The management of Plitt Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 52,000 machine-hours. Capacity is 65,000 machine-hours and the actual level of activity for the year is assumed to be 58,000 machine-hours. All of the manufacturing overhead is fixed and both the estimated amount at the beginning of the year and the actual amount at the end of the year are assumed to be $592,800 per year. It is assumed that a number of jobs were worked on during the year, one of which was Job Q20L which required
360 machine-hours.If the company bases its predetermined overhead rate on the estimated amount of the allocation base for the upcoming year, then the predetermined overhead rate is closest to: A. $10.22 per machine-hour B. $11.40 per machine-hour C. $8.18 per machine-hour D. $9.12 per machine-hour
NC Products Inc is considering investing in one of two projects. Both projects have a net present value of $25,000; however, Project #1 requires an initial investment of $300,000 while Project #2 requires an initial investment of $700,000. Based on this information, which of the following statements is true?
A) Project #2 will have a higher profitability index. B) Project #1 will have a higher profitability index. C) Both projects will have the same profitability index. D) There is not enough information to determine the profitability index of either project.
Which of the following is a fundamental goal of shareholders?
a. To have the business survive b. To keep their jobs c. To have an immediate increase in stock price d. To have the business provide jobs