Computer-Aided Manufacturing (CAM)is Faster and More Flexible Than Traditional Methods

question 31

True/False

Computer-aided manufacturing (CAM)is faster and more flexible than traditional methods of manufacturing.

Understand the effect of changes in sales, expenses, and assets on financial performance indicators.

Understand the concept of margin in ROI analysis and its computation.

Identify the benefits and drawbacks of using residual income as a performance measure.

Understand the implications of financial decision-making on company divisions.

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Definitions:

Accrual Accounting

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is received or paid.

Proprietary Fund Types

Types of funds used by governmental entities to account for activities similar to those found in the private sector, where the intent is to recover costs through user charges.

Internal Service Funds

Funds used by a government entity to account for the services provided by one department to other departments on a cost-reimbursement basis.

Enterprise Funds

Governmental accounting funds used to account for operations financed and operated in a manner similar to private business enterprises, where the intent is that the costs are financed primarily through user charges.