In accounting, emphasis is placed on determining net income in accordance with generally accepted accounting principles. in finance, the primary emphasis is also on net income because that is what investors use to value the firm. however, a secondary financial consideration is cash flow, because cash is needed to operate the business.
a) true
b) false

Identify which of the twelve basic functions listed below fit the description given.

Lusk corporation produces and sells 14,300 units of product x each month. the selling price of product x is $25 per unit, and variable expenses are $19 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $72,000 of the $102,000 in monthly fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:

Effective capacity is the: a. capacity a firm expects to achieve given the current operating constraints.b. minimum usable capacity of a particular facility.c. sum of all the organization's inputs.d. average output that can be achieved under ideal conditions.e. maximum output of a system in a given period.