16-21 answers

e) Which of the following benefits could an organization reasonably expect from an effective budget program? Increased employee motivation Uncover potential bottlenecks A) B) C) D) Yes No No No Yes No A) Option A B) Option D C) Option B D) Option C 17) Which of the following will have the largest dollar effect on the net present value of a 10 year investment project? A) a decrease of $20,000 in both the working capital needed to start the project and the amount being released at the end of the 10 years. B) an increase of $2,000 in the annual cash inflows from this project C) a decrease of $20,000 in the initial investment required with no effect on the expected salvage value in 10 years. D) an increase of $20,000 in the expected salvage value in 10 years with no effect on the initial investment 18) In the payback method, depreciation is deducted from net operating income when annual net cash flow A) True B) False 19) In activity-based A) True B) False costing, nonmanufacturing costs are not assigned to products. 20) Which terms would make the following sentence true? Manufacturing companies that benefit the most from activity-based costing are those where overhead costs are a product cost and where there is percentage of total diversity among the various products that they produce. A) low, little ) low, considerable B) high, little D) high, considerable 21) The term joint cost is used to describe the costs incurred after the split-off point in a process involving joint products A) True b) False