Your Firm Has Been in Business for Two Years

question 64

Multiple Choice

Your firm has been in business for two years. In its first year, the firm ended with $227,000 of current assets, long-term assets of $143,000, $70,000 in surplus cash, current liabilities of $52,000, and long-term assets of $68,000. At the end of the second year, the firm had current assets of $279,000, long-term assets of $195,000, surplus cash of $90,000, current liabilities of $62,000, and long-term assets of $78,000. What is your firm's change in net operating working capital?

• A)$22,000
• B)$62,000
• C)$42,000
• D)$32,000

Identify the types of variance analyses and their relevance to overhead cost management.

Understand the significance of nonfinancial performance measures in business evaluation.

Grasp the concept of normal standards and their role in operational planning.

Recognize the conditions that necessitate the revision of standard costs.

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Definitions:

Questioning Approach

A sales technique involving asking targeted questions to understand customer needs, preferences, and challenges, facilitating a more tailored sales pitch.

Apologize

The expression of regret or sorrow for having made a mistake or caused inconvenience, aiming to mend a relationship or situation.

Demonstration Approach

A sales technique where the product or service is presented in action, showcasing its benefits and functionalities directly to potential customers.

Memorized Sales

A sales technique involving the rote recitation of a standardized pitch or presentation to potential customers.