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Unformatted text preview: Opportunity costs Sunk costs that have been expensed for tax purposes. 3. Which of the following is not a key element in strategic planning as it is described in the text? (Points: 6) The mission statement The statement of the corporation's scope The statement of cash flows. The statement of corporate objectives The operating plan. 4. Which of the following assumptions is embodied in the AFN formula forecasting method? (Points: 6) All balance sheet accounts are tied directly to sales. Accounts payable and accruals are tied directly to sales. Common stock and long-term debt are tied directly to sales. Fixed assets, but not current assets, are tied directly to sales. Last year's total assets were not optimal for last year's sales. 5. The capital intensity ratio is generally defined as follows: (Points: 6) Sales divided by total assets, i.e., the total assets turnover ratio. The percentage of liabilities that increase spontaneously as a percentage of sales. The ratio of sales to current assets. The ratio of current assets to sales. The amount of assets required per dollar of sales, or A*/So....
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- Spring '09