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10. In order to estimate production requirements,...




10. In order to estimate production requirements, we: (Points: 5) add beginning inventory to projected sales in units and subtract desired ending inventory. add projected sales in units to desired ending inventory and subtract beginning inventory. add beginning inventory to desired ending inventory and divide by two. add beginning inventory to desired ending inventory and subtract projected sales in units. 11. A firm utilizing FIFO inventory accounting would, in calculating gross profits, assume that: (Points: 5) all sales were from current production. all sales were from beginning inventory. sales were from beginning inventory until it was depleted, and then use sales from current production. all sales were for cash. 12. The need for an increase or decrease in short-term borrowing can be predicted by: (Points: 5) ratio analysis. trend analysis. a cash budget. an income statement. 13. The difference between total receipts and total payments is referred to as: (Points: 5) cumulative cash flow. beginning cash flow. net cash flow. cash balance. 14. Firms that successfully increase their rates of inventory turnover will, among other things: (Points: 5) be able to reduce their borrowing needs. be able to reduce their dividend payments to stockholders. find it more difficult to be given credit by their resource suppliers. have a greater need for high balances in their cash accounts. 15. The concept of operating leverage involves the use of______ costs to magnify returns at high levels of operations. Fixed variable marginal semi-variable 16.A highly automated plant would generally have: more variable than fixed costs more fixed than variable costs all fixed costs all variable costs 17. If a firm has fixed costs of $20k, variable cost per unit of 50 cents, and a break- even point of 5k units, what is the price? $2.50 $5.00 $4.00 $4.50 18. A firms break even point will rise if: fixed costs decrease contribution margins increase price per unit rise variable cost per unit rises 19. Firms with a high degree of operating leverage are: easily capable of surviving large changes in sales volume usually trading off lower levels of risk for higher profits significantly afftected by changes in interest rates trading off higher fixed costs for lower per unit variable costs 20. If TechCor has fixed costs of 80K, variable costs of $1.20/unit, sales price/unit of $6, and depreciation expense of 25K, what is its cash break even in units? 9167 11458 21875 45833


Paper#8781 | Written in 18-Jul-2015

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