compare Company A and Company B. Using the risk measure in each question, answer the following:...
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compare Company A and Company B. Using the risk measure in each question, answer the following: COMPANY A IS RISKIER THAN COMPANY B. Each question is INDEPENDENT. 1. Percent cash sales: Company A = 25% and Company B = 15% 2. Coefficient of variation: Company A = 25% and Company B = 15% Required level of ending finished goods inventory (production budget): Company A = 40% of next month's sales, and Company B = 25% of next month's sales 3. 4. 5. 6. 7. The natural tension within the budgeting process involves planning and budget accuracy Total scrap = 15,000 finished units, when the good production required = 85,000 finished units and the budgeted scrap rate = 15%. The goal of participative budgeting involves increasing supervisor reliance on subordinates with specialized knowledge Budget ratcheting recognizes that for planning purposes, budgets generally increase regardless of changes in the business environment T F T T T T T T F F F LL F F LL F compare Company A and Company B. Using the risk measure in each question, answer the following: COMPANY A IS RISKIER THAN COMPANY B. Each question is INDEPENDENT. 1. Percent cash sales: Company A = 25% and Company B = 15% 2. Coefficient of variation: Company A = 25% and Company B = 15% Required level of ending finished goods inventory (production budget): Company A = 40% of next month's sales, and Company B = 25% of next month's sales 3. 4. 5. 6. 7. The natural tension within the budgeting process involves planning and budget accuracy Total scrap = 15,000 finished units, when the good production required = 85,000 finished units and the budgeted scrap rate = 15%. The goal of participative budgeting involves increasing supervisor reliance on subordinates with specialized knowledge Budget ratcheting recognizes that for planning purposes, budgets generally increase regardless of changes in the business environment T F T T T T T T F F F LL F F LL F
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Answer 1 Company B is riskier than Company A Because the percentage of cash sales is more for ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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