In Preparing for Succession,the Senior Generation Has Certain Responsibilities

question 29

Multiple Choice

In preparing for succession,the senior generation has certain responsibilities.One of these is that:

• A)the estate of the senior generation should be settled and audited.
• B)the senior generation should hold the next generation accountable for their actions.
• C)the business should have a formal audit of the financial statements.
• D)the next generation should develop long term plans for leadership and be held to these plans.

Explain the significance of standard cost recording in inventory management.

Analyze the effect of labor rates on cost variances and operational efficiency.

Recognize the importance of standard costing in identifying and managing production variances.

Understand the relationship between labor efficiency variance and variable overhead efficiency variance.

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Definitions:

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionately weighted, representing the average cost of funding from all sources.

Pure Play

A company that focuses on a specific industry or product segment without diversification into other areas.

Capital Structure

The combination of borrowing and ownership funds that a business employs to finance its activities and expansion.

Financing

The act of providing funds for business activities, making purchases or investing.