Answer: Option A
Explanation: Capital budgeting is the process by which an analyst using different tools such as discounted cash flow, future cash flow and payback period tries to evaluate the prospective long term investments of an organisation.
Accrual accounting method is an accounting convention and not a capital budgeting tool. It states that every transaction of the entity must be recorded on accrual basis.
Thus from the above we can conclude that the correct option is A.
Answer:
The correct option is B: Gap 2
Explanation:
The gaps model of service quality, which is also referred to as the 5 gaps model is a vital framework used by organization to ensure customer satisfaction. The Gap 2 model is normally between the perception of the management and what the actual experience of the customer is. In the Gap 2, managers always ensure that organization are delivering and defining the level of quality service they need. From the question Fedex is dealing with actual customer-defined performance standards and this indicates that they are a closing provider of the gap 2 of the gaps model of service quality.
An example of delayed purchasing is when you would pay for a hot tub in 39 weeks and receiving the hot tub today. It is like a car loan, you would pay for the car over a certain time frame and you would drive home with the car that day. The correct answer is B.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
You believe this will increase your contribution margin from $127,000 to $218,000 per year. Rent, however, will increase by $400 per month, and utilities will increase by $150 per month. You will also need to hire two additional employees for $24,000 each annually.
We need to calculate the effect of moving in the net income of the company:
Effect on income= (218,000 - 127,000) - (400*12) - (150*12) - 24,000*2
Effect on income= $36,400 increase
