Building a Model for Long-Term Forecasting Reveals Points in the Future

question 124

Multiple Choice

Building a model for long-term forecasting reveals points in the future where the firm will need ________ when retained earnings are not enough to fund planned future investments.

• A)external financing
• B)stock dividends
• C)dividend payments
• D)mergers
• E)large cash reserves

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Definitions:

Standard Costs

Predetermined or estimated costs of manufacturing, selling, or performing a service, used as targets and benchmarks against actual costs.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, based on the standard rate and actual hours worked.

Direct Labor Time Variance

A measure used in cost accounting to analyze the difference between actual hours worked and the standard hours expected for a task.

Standard Costs

Predetermined costs assigned to goods and services, used as targets for performance evaluation.