The Use of the Computer to Compare Production Hours to Direct

question 66

Multiple Choice

The use of the computer to compare production hours to direct labor hours on daily production reports relates to the:

• A) valuation or allocation assertion.
• B) completeness assertion.
• C) rights and obligations assertion.
• D) existence or occurrence assertion.
• E) presentation or disclosure assertion.

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Definitions:

Planning Horizon

The long-range time period the financial planning process focuses on, usually the next two to five years.

Dividend Policy

A company's strategy or policy to decide how much profit it will pay out to shareholders as dividends.

Retention Ratio

The fraction of net profits not paid out as dividends but kept within the corporation for reinvestment or other purposes.

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders in dividends, representing how much money a company returns to shareholders versus retaining for growth.