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For a manufacturer, the final customer is part of the supply chain and customer service
is part of the value chain.
Because noncash investing and financing transactions do not affect cash, they should
not be reflected in the body of the statement of cash flows.
The standard costing method uses the sum of actual direct materials, actual direct labor,
and actual overhead to determine the product unit cost.
Issuance of notes, either long- or short-term, would be reflected in the financing
activities section of the statement of cash flows.
A performance management and evaluation system is mainly utilized to account for and
report on financial performance.
Direct materials are the only materials used in a product.
A liquidating dividend is usually paid when a company is going out of business or
reducing its operations.
An asset purchased according to a deferred payment plan should be recorded based on
the total cash paid.
A partnership need not obtain permission from the state before it legally conducts
business.
When managing inventory in a just-in-time environment, the need of controlling
workers does not exists.
Revenue should be recognized, even when collectibility is not reasonably assured.
Electric power charges are an example of a mixed cost.
The sale of plant assets and the payment of dividends will increase free cash flow.
Licenses are properly classified as intangible assets.
