Finance Questions
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A quantitative plan for acquiring and using resources over a specified time period is an _____:
In a manufacturing company, the _____ _____ budget details the raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories:
Which budget is a detailed schedule showing the expected sales for the budget period:
ABC Inc.'s expected sales for the first six months of the year are:Jan- 12,000Feb- 15,000Mar- 16,000Apr- 20,000May- 22,000Jun- 25,000If desired ending inventory is 25% of next month's sales, the number of units produced in March is:
Working hours required to satisfy the production budget are shown on the ____ budget:
A budget prepared with the full cooperation of management at all levels is a ____ budget:
All costs of production other than direct materials and direct labor are shown on the _____ _____ budget:
Budgeted expenses for areas other than manufacturing are shown on the ____ budget:
In a manufacturing company, the ____ budget shows the number of units that must be manufactured to satisfy needs and provide for the desired ending inventory:
Gathering feedback to ensure that the plan is being followed is referred to as ____:
To calculate raw materials to be purchased on the direct materials budget, add the desired _____ inventory of raw materials to the raw materials needed based on the _____ budget and _____ the beginning inventory of raw materials to arrive at raw materials to be purchased:
In a manufacturing company, the ______ budget is prepared right after the sales budget:
Both the production and selling and administrative expense budgets are prepared using information directly from the ____ budget:
Which of the following statements is true of a project with a long payback period?
The traditional internal rate of return (IRR) assumes that cash flows are reinvested at the _____.
Smart Solutions Inc. is evaluating a capital project for expansion. The project costs $10,000, and it is expected to generate $5,000 per year for three years. If the required rate of return is 10 percent, what is the terminal value of the project?
A firm's effective capital budgeting procedures result in:
The modified internal rate of return (MIRR) is a better indicator of a project's true profitability because:
Two firms—Tangerine Inc. and Cyan Inc. analyze the same project for capital budgeting decision. Tangerine Inc. determines that the project's internal rate of return (IRR) is 9 percent. Cyan Inc. uses the net present value (NPV) method and determines that the project is unacceptable. Given this information, which of the following statements is correct?
Which of the following criteria should be used to choose a project if there is a conflict between two mutually exclusive projects?