Finance Questions

budgets based on _____________________ are more likely to result in realistic goals that will contribute to the growth and profitability of the company

The essentials of effective budgeting do not include:

In computing the overhead variances, it is important to remember all of the following exceptA) standard hours allowed are used in each of the variances.B) budgeted costs for the controllable variance are derived from the flexible budget.C) the volume variance generally pertains to variable costs.D) all of these options are important to remember.

Which of the following is true about the overhead variance?A) Budget overhead and overhead applied are the same.B) Total actual overhead is composed of variable overhead, fixed overhead, and period costs.C) Actual hours worked are used in computing the variance.D) Standard hours allowed for work done is the measure used in computing the variance

The formula for computing the direct labor budget is to multiply the direct labor cost per hour by the

T/F: Labor quantity variances usually result from misallocation of workers.

________________ focus primarily on the cash resources needed to fund expected operations and planned capital expenditures

The ________________ is a set of interrelated budgets that constitutes a plan of action for a specified time period

A ________________ shows potential sales for the industry and a company's expected share of such sales

All of the following are advantages of standard costs except theyA) facilitate management planning.B) are useful in setting selling prices.C) simplify costing in inventories.D) increase net income.

The advantages of standard costs include all of the following exceptA) promotes greater economy by making employees aware of costs.B) facilitates management planning.C) simplifies the costing of inventories.D) determines precise selling prices.

The advantages of standard costs include all of the following except

Which one of the following is not an advantage of a standard costing system?A) It can be used as the price at which to sell a product.B) It allows for a comparison of differences between actual and standard costs.C) It is useful in highlighting variances for management by exception.D) It provides a quick basis for determining the actual cost of a product.

How long is info on personal bankruptcy reported on your credit file

The average rate of return from the stock market is

Which of the following types of projects generally have the highest total risk?

An analyst should evaluate each project at its own opportunity cost of capital. The true cost of capital depends on the particular use of that capital.

One calculates the weighted average cost of capital (WACC), on an after-tax basis, as:WACC = (rD) (1 - TC ) (D/V) + (rE) (E/V), where: V = D + E.

The cost of capital is the same as the cost of equity for firms that are financed:

The hurdle rate for capital budgeting decisions is: