The process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets is called a. variable cost analysis b. cost-volume-profit analysis c. capital investment analysis d. absorption cost analysis
The process by which management plans, evaluates and controls long-term investments decisions involving fixed assets is called capital investment analysis.
Therefore, option \(\mathrm{c}\) is correct.
The process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets is...
True/False Answer all questions. Write out the word True or False in the space provided. ( 2 Pts. Ea.) 1. Standard Costs serve as a device for measuring efficiency. 2. The Standard cost is how much a product should cost to manufacture. 3. Standard costs should always be revised when they differ from actual costs. 4. Changes in technology, machinery, or production methods may make past cost data irrelevant when setting standards. 5. Differential revenue is the amount of increase...
The area of finance that deals with long-term investment decisions is known as a. capital structure. b. working capital management. c. financial strategy. d. capital budgeting.
Working capital management involves decisions related to Select one: a. labor contracts b. current assets and liabilities c. fixed asset acquisition d. long term debt
Fixed assets that are depreciated are sometimes called: O A. Accounts Payable. O B. long-term assets. O c. current assets. O D. long-term liabilities.
1. Which of the following is NOT a function of financial management? A. Deciding the best sources of finance. B. Spending money on capital expansion C. Preparation of tax returns D. Evaluating how much dividends to pay shareholders. 2. The process of planning and managing a firm’s long-term investments is called; A. Working capital management. B. Financial depreciation. C. Agency cost analysis. D. Capital budgeting. 3. A profitability index (PI) greater than 1 creates a value for shareholders A. True...
Which of the following statements are true when making decisions using cost volume profit analysis? A. As long as the contribution margin is a positive number, net income will be positive B. As long as variable costs are more then fixed costs, net income will be negative C. As long as the contribution margin is greater than the fixed costs, net income will be positive D. As long as the sales price per unit is greater than fixed costs per...
Which of the following is a goal of working capital management? To manage long-term assets in a way that maximizes returns To ensure liquidity while reducing opportunity costs To elongate the cash conversion cycle To generate as much free working capital as possible
______ 17. Each of the following is a typical source of long-term capital for a firm EXCEPT Accounts Payable. Preferred Stock. Long-Term Debt. Common Stock. ______ 18. When calculating a firm’s “Weighted Average Cost of Capital” (WACC), the cost of each type of capital is weighted by A. the firm’s beta value. B. the current inflation rate in the economy. C. the bank’s prime lending rate. D. its proportion in the firm’s capital structure. ______ 19. The “weights” in the...
QUESTIONS If decisions within a company are made by top management at headquarters, which of the following terms best describes this company? a. cost center. b. decentralized organization. c. centralized organization. d. investment center. QUESTION 6 An organizational segment that is responsible for costs and revenues is known as: O a. a financing center. a profit center b. Oc. a cost center Od. an investment center. QUESTION 7 A management control system is an integrated set of techniques for gathering...
QUESTION 18 A downside to absorption costing is: A not including fixed manufacturing overhead in the cost of the product B. that it is not really useful for managerial decisions C. that it is not allowable under GAAP D. that it is not well designed for cost-volume-profit analysis