Variable costing is more useful than absorption costing in determining a company's break-even point

________ committees are established to handle specific situations and then dissolve once the task is accomplished

A) Quality circle B) Task force C) Ad hoc D) Standing

Vega Music's projected net income and free cash flows are given above in thousands of dollars. Vega expects that their net income and increases in net working capital to increase by 5% per year

Net Income 60,000 + Depreciation +6,000 - Capital Expenditures -7,000 - Increases in Working Capital -2,000 = Free Cash Flow 57,000 If Vega were able to reduce its annual increase in working capital by 10% without affecting any other part of the business adversely, what would be the effect of this reduction on Vega's value, given a cost of capital of 13%? A) an increase of $500,000 B) an increase of $1,370,000 C) an increase of $2,500,000 D) an increase of $3,800,000