Cash equivalents:

A. Include time deposits.
B. Include checking accounts.
C. Have no immediate value.
D. Are readily converted to a known cash amount.
E. Include savings accounts.


Answer: D

Business

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Sales branches are independent wholesalers that are allowed to operate only in specific geographical territories

Indicate whether the statement is true or false

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According to Robbins, a cost minimization strategy is best suited to what of the following types of structure?

a. loose b. tight control c. low specialization d. low formalization

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The production volume variance is the difference between fixed costs on the flexible budget and the fixed costs on the master budget.

Answer the following statement true (T) or false (F)

Business

The following data have been provided by Moretta Corporation, a company that produces forklift trucks: Budgeted production 3,400trucksStandard machine-hours per truck 2.9machine-hoursStandard supplies cost$1.50per machine-hourActual production 3,800trucksActual machine-hours 10,930machine-hoursActual supplies cost (total)$17,496 Supplies cost is an element of variable manufacturing overhead. The variable overhead efficiency variance for supplies cost is:

A. $135 F B. $135 U C. $966 U D. $966 F

Business