A company that makes decorations for Christmas trees has high sales in its fourth quarter but very low sales during the rest of the year. It manufactures decorations steadily throughout the year, however
Which of the following is NOT a likely consequence of this scenario?
A) The firm will need sources of short-term cash to fund inventory in the second and third quarters.
B) The firm will see negative net cash flows in the second and third quarter.
C) The firm will have a large short-term surplus in the fourth quarter.
D) Accounts payables will rise from the first to fourth quarter.
Answer: D
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The audit report in the annual report attests to the fairness of the presentation of the financial statements
Indicate whether the statement is true or false
The actual volume and volume estimated in a business plan are 60,000 units and 55,000 units, respectively. If the volume variance of the business works out to $30,000, calculate the margin per unit estimated in the plan
A) $6 B) $10 C) $15 D) $18.5 E) $24.5