Indicate Whether Each of the Following Statements Is True or False

question 21

Short Answer

Indicate whether each of the following statements is true or false.
_____ a) A flexible budget can be viewed as an extension of a company's master budget.
_____ b) The master budget is a static budget because it generally is prepared for a single volume of activity.
_____ c) Standards are established for a company's costs but not for the selling prices of its goods and services.
_____ d) If direct materials are budgeted at $34,000 for 10,000 units, direct materials would also be budgeted at $34,000 for 11,000 units.
_____ e) Flexible and static budgets use different per unit standard amounts for variable costs.

Understand the concepts of operant learning principles, reinforcement, and punishment.

Evaluate the effectiveness of the current prison system with regard to behavioral psychology principles.

Suggest alternative approaches to punishment and rehabilitation in the prison system.

Comprehend the principles of operant conditioning in a work environment.

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Definitions:

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation each year over the asset's useful life.

Working Capital

The gap between a firm's current assets and its current liabilities, reflecting its short-term financial stability.

Net Present Value

A financial metric that calculates the present value of future cash flows minus the initial investment, used in capital budgeting to assess the profitability of investments.

Investment Project

A project involving the allocation of funds to assets or activities with the expectation of generating income or profit in the future.