A non-profit corporation:
a. cannot generate any income.
b. always has tax exempt status.
c. cannot distribute any profit to its members.
d. Both b and c
e. All of the above
c
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The following information is available for Richardson Company for its first year of operations: Sales in units 5,000 Production in units 8,000 Manufacturing costs: Direct labor $3 per unit Direct material $5 per unit Variable overhead $1 per unit Fixed overhead $100,000 Net income (absorption method) $30,000 Sales price per unit $40 Refer to Richardson Company. If Richardson Company were using
variable costing, what would it show as the value of ending inventory? a. $120,000 b. $64,500 c. $27,000 d. $24,000
The product life-cycle concept from microeconomics and marketing provides useful insights into the relations among cash flows from operating, investing, and financing activities. During the _____ cash outflow exceeds cash inflow from operations because operations are not yet earning profits while the firm must invest in accounts receivable and inventories. Investing activities result in a net
cash outflow to build productive capacity. Firms must rely on external financing during this phase to overcome the negative cash flow from operations and investing. a. introduction phase b. growth phase c. mature phase d. late maturity phase e. decline phase
Ashland Inc is a manufacturer of small appliances. For which of the following activities would Ashland be more likely to use a static budget than a flexible budget?
A) For planning the amount of direct materials that will need to be purchased in the upcoming year. B) For the evaluation of whether or not actual direct labor costs were reasonably close to budgeted direct labor costs. C) For the comparing the actual manufacturing overhead costs with the budgeted manufacturing overhead costs during the year. D) For the evaluation of whether or not employees made the most efficient use of their time.
By avoiding or ignoring problems, passive communicators are likely to agree externally, while disagreeing internally.
Answer the following statement true (T) or false (F)