The Global Strategy Is Easier to Manage Because of the Limited

question 51

True/False

The global strategy is easier to manage because of the limited need to coordinate strategies and decisions across country borders.

Interpret the cash flow on total assets ratio to evaluate company performance.

Understand the components and format of the Statement of Cash Flows.

Explain the relevance of the Statement of Cash Flows to decision makers.

Analyze activities that affect cash flows from operating activities.

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Definitions:

Avoidable Costs

Expenses that can be eliminated if a particular decision is made or if an activity is ceased.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and should not affect future business decisions.

Irrelevant Costs

Costs that will not be affected by a decision and should not be considered when making that decision.

Periodic Basis

A method of accounting where financial and inventory records are updated at regular, fixed intervals.