In a SWOT analysis, strengths and weaknesses originate inside an organization, or internally. Opportunities and threats originate outside an organization, or externally, and cannot always be anticipated or controlled.
Answer the following statement true (T) or false (F)
True
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If the ending inventory is understated for any reason, net income will be overstated
a. True b. False Indicate whether the statement is true or false
Safety Products currently outsources an electrical switch that is a component in its sprinkler systems. The switches are purchased for $20 each. The company is considering making the switches internally and has conducted a study to determine the costs involved. The costs below are projected annual production costs: Unit-level material cost$3 Unit-level labor cost$2 Unit-level overhead$1 Batch-level cost (5,000 units per batch)$5,000 Product-level supervisory salaries$37,500 Allocated facility-level costs$20,000 Assume that the company needs 15,000 of the switches, which would be produced in three batches. Assume also that the company will still be operating within the relevant range. If Safety decides to make the parts under these conditions, the total relevant costs will be:
A. $142,500. B. $162,500. C. $105,000. D. $132,500.
While the Sarbanes-Oxley Act is an internal mechanism to ensure ethical corporate governance, the Committee of Sponsoring Organizations (COSO) is an external mechanism.
Answer the following statement true (T) or false (F)
Answer the following statements true (T) or false (F)
1. Greene Electric Company uses the direct method to prepare its statement of cash flows. Greene has reported cost of goods sold of $85,000 on its income statement for 2018. If the balance in Accounts Payable, for merchandise inventory suppliers only, has decreased by $8,000 during the year, then $8,000 needs to be subtracted from $85,000 to calculate payments to suppliers for merchandise inventory purchases. 2. Lightning Electric Company uses the direct method to prepare its statement of cash flows. Lightning has reported operating expenses of $63,000 on its income statement for the year 2019. If the balance in accrued liabilities has increased by $6,000 during the year, then $6,000 needs to be added to $63,000 to calculate payments to suppliers for operating expenses. Accrued liabilities relate to operating expenses. 3. Using the direct method, interest expense paid on a note payable is included in the operating activities section of the statement of cash flows. 4. In practice, most companies face complex situations. In these cases, a spreadsheet can help in preparing the statement of cash flows. 5. The spreadsheet starts with the beginning statement of cash flows and concludes with the ending statement of cash flows. 6. Accountants can prepare the statement of cash flows directly from the lower part of the spreadsheet.