Which of the following statements is true about the consolidated statement of cash flows?
a. The purchase of intercompany bonds from parties outside the consolidated group is treated as a retirement of consolidated debt; the payment is reported as a cash outflow from financing activities.
b. The purchase of intercompany bonds from parties outside the consolidated group is treated as a retirement of consolidated debt; the payment is reported as a cash outflow from investing activities.
c. Intercompany interest payments and amortization of premiums and/or discounts on intercompany bonds are reported in the operating activities section of the statement.
d. Intercompany interest payments and amortization of premiums and/or discounts on intercompany bonds are reported in the investing activities section of the statement.
a
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Which of the following statements is true of just-in-time management systems?
A) It involves ordering raw materials in large quantities to obtain volume discounts. B) It triggers production after the customer places an order. C) Its successful implementation is independent of vendor relationships. D) It contracts with suppliers to deliver large quantities of goods once a year.
Home Bakery Company manufactures two products—toaster ovens and bread machines
The following data are available: Toaster Ovens Bread Machines Sales price $80 $140 Variable costs $60 $60 Home Bakery Living can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Home Bakery's production capacity is 2,000 machine hours per month. What is the contribution margin per machine hour for toaster ovens? (Round machine hour per unit to two decimal places and your final answer to the nearest whole dollar.) A) $120 B) $20 C) $14 D) $320