Operations, Investing and Financing are the three activities according to which a statement of cash flows is organized.
Cash flow refers to the net balance of cash moving into and out of a business at a specific point in time. Cash is consistently moving into and out of a business.
For example- When a retailer purchases inventory, money flows out of the business toward their suppliers.
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Answer:
a. a release
Explanation:
Based on the scenario being described within the question it can be said that the agreement between Brick and Carmen is known as a release. This is a contract or agreement in which the individual accepting, agrees that they have absolutely no claim against the party that is named in the release. Which in this case would be Brick since he is the one that has offered Carmen $2,000 to not pursue any legal claim against him.
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Answer:
Companies that use ABC allocate all costs including direct materials, direct labour and manufacturing overhead to the product based on an activity cost allocation rate.
This statement is False.
Explanation:
In ABC, it is only the overhead that will be allocated to the product based on an activity cost allocation rate (cost drivers). Direct material cost and direct labour cost will be recorded at the actual cost incurred on direct material and direct labour.
Answer:
(a) the environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership.
(d) when managers come up with their own plans, they are likely to be more committed to following through on them.
Explanation:
Firstly, research has shown that both <u>decentralized decision structure (where managers are allowed to make their own decisions)</u> and planning activities; <u>are associated with higher performance in dynamic environments</u>.
This is one reason why the organization’s executives might opt for the decentralization approach to planning - because of the organization's dynamic nature
Secondly, when managers come up with their own plans, they are likely to be more committed to following through on them. When managers participate in planning it serves as a motivation for them to achieve it which is preferable to forcing the plans on them from senior management. This might have been the reason for Alcoa's improved performance when Paul O'Neill took over, in relation to safety records. Managers may have been allowed to make their own safety plans
