Question

When operations are interrupted or cut back, committed fixed costs are cut in the short term...

When operations are interrupted or cut back, committed fixed costs are cut in the short term because the costs of restoring them later are likely to be far less than the short-run savings that are realized . IS IT TRUE OR FALSE

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
QUESTION: Accounts payable are spontaneous secured sources of short-term financing that arise from the normal operations...
QUESTION: Accounts payable are spontaneous secured sources of short-term financing that arise from the normal operations of the firm. ANSWER OPTIONS: True False You need to specifically state IN THE SUBJECT LINE if the answer is TRUE or FALSE. EXAMPLES OF INADEQUATE RESPONSES: “I think the answer is False.” OR “The correct answer is “C.” Postings must be no less than 200 words in length to be considered. Any posting less than 200 words in length will not be reviewed.
12. Short-term financing Why use short-term financing? Cash flows from operations may not be sufficient for...
12. Short-term financing Why use short-term financing? Cash flows from operations may not be sufficient for a firm to keep up with growth-related financing needs, or the firm may not be able to always generate enough cash flow to maintain a surplus of cash. Firms prefer to borrow now to fulfill their capital requirements through means of short-term financing or long-term financing. Both methods have their advantages and disadvantages. The following statement identifies a possible characteristic of short-term financing. Consider...
When the FED wants to stimulate the economy it raises short term rates to attract new...
When the FED wants to stimulate the economy it raises short term rates to attract new investment and encourage savings True False
2. The costs per unit in the short term should always be greater or equal than...
2. The costs per unit in the short term should always be greater or equal than the costs per unit in the long term. True or False
TRUE OR FALSE 1. Short run producer surplus is equal to profits plus fixed costs 2....
TRUE OR FALSE 1. Short run producer surplus is equal to profits plus fixed costs 2. When Maximizing Profits a firm will always be equating the marginal expense of labor to the marginal expense of capital 3. Going to the dentist is an example of a situation that might involve a principal agent problem.
The Widget Company's total sales are forecasted to be $950,000. Fixed costs are $300,000 and the...
The Widget Company's total sales are forecasted to be $950,000. Fixed costs are $300,000 and the product sells for $310. The variable costs per unil are $238. Should the Chocolate Company shut down operations? (Assume that fixed costs will continue for the short term). A.They should stay open even though they are operating at a loss as long as they cover some of the foxed costs. B.They will be profitable so they should remain open even though the profit was...
Question 28 Long-term financing may be riskier than short-term financing during periods of tight credit because...
Question 28 Long-term financing may be riskier than short-term financing during periods of tight credit because the firm may not be able to rollover (renew) its debt. True False Question 25 When deciding whether or not to take a trade discount, the cost of borrowing funds should be compared to the effective annual rate (EAR) of trade credit to determine if the cash discount should be taken. True False Question 26 Depreciation is a non-cash charge, it doesn’t affect the...
1. When setting long-term sales prices for products, the sales price must cover all costs, including...
1. When setting long-term sales prices for products, the sales price must cover all costs, including fixed costs. True or False
True Or False 1- Fixed costs should not be included in a flexible budget because they...
True Or False 1- Fixed costs should not be included in a flexible budget because they do not change when the level of activity changes. (       ) 2-To help assess how well a manager has controlled costs, actual costs should be compared to what the costs should have been for the actual level of activity. (       ) 3-The activity variance for revenue is favorable if the actual revenue for the period exceeds the revenue in the static planning budget. (      ...
5- If an economy is in short-run equilibrium where the level of real GDP is less...
5- If an economy is in short-run equilibrium where the level of real GDP is less than potential output, then, in the long run, one will find: A-Nominal wages will rise and the SRAS curve will shift left bringing the economy back to its potential real GDP. B-Nominal wages will rise shifting the AD curve to the right and restoring real GDP to its potential level C-Nominal wages will fall and the SRAS curve will shift right bringing the economy...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT