All of the following are reasons for the importance of forecasting and budgeting, EXCEPT:
A. requires the organization to think about what is happening in the markets
B. sets specific strategic objectives for the various divisions and departments within the organization
C. sets specific operational parameters for the various divisions and departments within the organization
D. requires managers to make decisions related to resource allocation, when measured against specific
outcomes
E. become benchmarks/targets against which actual results can be measured
Ans: B. sets specific strategic objectives for the various divisions and departments within the organization
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In order to achieve equality of opportunity within its organization, Clarkson Company has taken steps such as active recruitment, the elimination of prejudicial interview questions, and establishment of minority hiring goals. Clarkson's efforts can be BEST described as _____.
Fill in the blank(s) with the appropriate word(s).
Faros Hats, Inc has two product lines—batting helmets and football helmets
The income statement data for the most recent year is as follows: Total Batting Helmets Football Helmets Sales revenue $850,000 $500,000 $350,000 Variable costs (440,000 ) (150,000 ) (290,000 ) Contribution margin $410,000 $350,000 $60,000 Fixed costs (190,000 ) (90,000 ) (100,000 ) Operating income (loss) $220,000 $260,000 $(40,000 ) What is the effect of dropping football helmets line on the operating income of the company? (Assume that fixed costs remain unchanged and that there would be no adverse effect on other sales.) A) Operating income will increase by $40,000. B) Operating income will increase by $90,000. C) Operating income will decrease by $60,000. D) Operating income will decrease by $350,000.