The interest coverage ratio measures the degree of protection a company has from default on interest payments
Indicate whether the statement is true or false
True
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A Japanese factory has offered to supply Walsh with ready-made units for a cost of $15 per sensor. Assume that Walsh's fixed costs could be reduced by $3000 if it outsources and that Walsh will not be able to use the excess capacity in any profitable manner. If Walsh decides to outsource, monthly operating income will ________.
Walsh Automobile Company fabricates automobiles. Each vehicle includes one airflow sensor, which is currently made in-house. Details of the airflow sensor fabrication are as follows:
A) increase by $13,000
B) decrease by $13,000
C) increase by $5600
D) decrease by $1900
World Bank studies have shown that underdevelopment is often due to:
A. mental slowness in people of the climates around the equator. B. lack of government investment in education. C. socialist political regimes. D. factors such as parasites and viruses that are a part of tropical climates and expand unchecked because of the lack of winter temperatures.
______ are usually offered to an individual employee to allow them to buy a certain number of shares of stock in the company at a specified point in the future at a certain price.
A. Variable pay B. Gainshares C. Social loafers D. Stock options
Budgeting supports the planning process by encouraging all of the following activities except:
A) requiring all organizational units to establish their goals for the upcoming period B) increasing the motivation of managers and employees by providing agreed-upon expectations C) directing and coordinating operations during the period D) improving overall decision making by considering all viewpoints, options, and cost reduction possibilities