Reference no: EM132894050

Problem 1. Just-in- time inventory management technique ensures that suppliers get their merchandise just when it is needed.

a) True
b) False

Problem 2. What is a NOT a source of growth funds?

a) Investing more in capital assets
b) New equity
c) Profit for the year
d) Debt financing

Problem 3. It is NOT important for NFP organization to prepare cash budgets.

a) False
b) True

Problem 4. The higher the PV ratio the better it is

a) False
b) True

Problem 5. Raw materials inventories consist of partially assemble or incomplete goods in the production cycle.

a) True
b) False

Problem 6. What costs fluctuate directly with changes in volume of production?

a) Product costs
b) Sunk costs
c) Out- of- pocket costs
d) Period costs

Problem 7. Committed costs are considered variable costs and do NOT have to be incurred in order to operate a business.'

a) True
b) False

Problem 8. Zero- based budgeting is NOT an effective budgeting method for managers responsible for overhead units.

a) False
b) True