answer to 50 - divided by the amount of the investment in...

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20. Direct labor, direct labor dollars, and machine hours are examples of activity bases. (Points: 5) True 41. The theory of constraints states that by identifying a constraint, such as a bottleneck, that exists in the processing of a good or service and taking corrective steps, the process will be improved. (Points: 5) True 42. Processes within service organizations do not contain bottlenecks that affect lead time and throughput. (Points: 5) False 43. Operational capital investment decisions affect all or a considerable part of a company's operations, have uncertain lives, and require large investments. (Points: 5) True 44. The cost of capital is the interest rate that results in the present value of cash inflows from an investment. (Points: 5) True 45. The payback period is the average accounting income a project generates per period
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Unformatted text preview: divided by the amount of the investment in the project. (Points: 5) True False 46. Service companies also make capital investment decisions. (Points: 5) True 47. Internal control systems are based on the theory that workers do not always behave in ways that are in the best interests of their company or its owners. (Points: 5) False 48. Payroll and other expenses are susceptible to manipulation. (Points: 5) True 49. Which of the following trends in the new business environment is concerned with the length of time it takes to develop, manufacture, and deliver a product? (Points: 5) just-in-time (JIT) 50. Traditional management accounting information (Points: 5) does not focus enough on cost drivers...
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This note was uploaded on 08/22/2011 for the course ACCOUNTING 201 taught by Professor Stevejoseph during the Winter '11 term at Aarhus Universitet.

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answer to 50 - divided by the amount of the investment in...

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