A Firm Is Considering Changing Their Credit Terms

question 84

Multiple Choice

A firm is considering changing their credit terms. It is estimated that this change would result in sales increasing by $1,600,000. This in turn would cause inventory to increase by $125,000, accounts receivable to increase by $100,000, and accounts payable to increase by $90,000. What is the firm's expected change in net working capital?

• A) $1,735,000
• B) $315,000
• C) $225,000
• D) $135,000

Explain the primary goal of behavior therapy and how it differs from psychoanalytic approaches.

Understand the significance and application of cognitive therapy techniques.

Differentiate between systematic desensitization, aversive conditioning, and applied behavior analysis.

Describe how cognitive restructuring aims to change maladaptive thoughts to alleviate psychological issues.

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Definitions:

Machine-Hours

A measure of production volume or activity based on the number of hours machines are operated in the manufacturing process.

Applied Manufacturing Overhead

Costs related to production that are not directly associated with the product but are allocated to it, such as utilities or maintenance expenses of the production facility.

Job Cost Sheet

A document that records the costs associated with a specific job, including materials, labor, and overhead.

Direct Labor-Hours

A measure of the total hours worked by employees directly involved in the production process.