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2 years ago

All of the following are methods that aid management in analyzing the expected results of capital budgeting decisions EXCEPT:

Business

1 answer:

g100num [7]2 years ago

5 0

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.

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The owners of a small bar and grill want to run an ad on local radio in the town where the business is located. Their objective

sattari [20]

Answer:

Determine the local radio listening audience by:

1. Compare online streaming listeners

2. Conduct Survey

3. Check radio station's ratings

Explanation:

1. Since most radio stations stream their programs live online, the owners of the small bar and Grill could determine the number of listening audience.

2. A survey conducted or could be conducted that shows what timing would be best to broadcast the awareness ad is another option.

3. Ratings of the local radio stations is an indicator of which stations have a wider signal range.

8 0

2 years ago

Consider the following three decisions that an organization could be faced with:

JulijaS [17]

Answer:

The correct answer is II. Deciding between Singapore, London or Buffalo as the location for the construction of a new manufacturing facility.

Explanation:

Strategic Planning is a management tool that allows you to establish the task and the path that organizations must travel to achieve the planned goals, taking into account the changes and demands that their environment imposes. In this sense, it is a fundamental tool for decision making within any organization. Thus, Strategic Planning is an exercise in the formulation and establishment of objectives and, especially, in the action plans that will lead to achieving these objectives.

7 0

2 years ago

Tom and cindy lewis are buying a house with a $300,000 sales price and their ltv will be 80%. assume that they paid no originati

dlinn [17]

Answer: Tom and Cindy paid 1.5 discount points.

House Value = $300,000.

Loan-to-Value Ratio (LTV) = 80%

Since LTV is 80%, the total loan (mortgage) value is :

$Mortgage Value = House Value * LTV$

$Mortgage Value = $240,000 (300,000*0.80)$

In the real estate context, a point refers to one percent (1%) of the mortgage amount. There is no rule that these points should be in whole numbers.

We can find the number of points paid as follows:

$No. of points paid = (Value of points in dollars /Value of mortgage) *100$

$No. of points paid = (\frac{3600}{240000} )* 100 [/tex][tex] No. of points paid = 1.5 points.$

There are two types of points:

Discount Points: are actually pre-paid interest on the mortgage loan, and help in lowering the interest rate on the mortgage.
Origination points : help in covering the costs incurred by the lender in processing the loan.

7 0

2 years ago

Suppose you’ve already received your free credit reports this year. Give 3 situations in which the credit bureaus would have to

dmitriy555 [2]

Answer:

The Fair Credit Reporting Act allows you to get a free credit report under certain circumstances:

If you were denied a loan, insurance or job application based on low credit score you have 60 days to request a free copy of your credit report.
If your are currently without a job but you plan to look for one within 60 days.
It your are currently on welfare.
If you suspect you are victim of identity theft.

3 0

2 years ago

The following costs and inventory data were taken from the accounts of Simon Company for 2010:

kenny6666 [7]

Answer:

Part a

Direct Materials Schedule

Beginning Materials $ 8,000

Add Purchases $83,000

Less Ending Materials ($ 7,000)

Less Indirect materials ($4,000)

Direct Materials Used in Production $80,000

Part b

Overheads Incurred during the year

Factory rent 8,000

Factory utilities 10,000

Indirect materials 4,000

Indirect labor 6,000

Total Overheads $28,000

Part c

Cost of Goods Manufactured Schedule

Direct Materials $80,000

Direct labor $42,000

Overheads $28,000

Add Opening Work In Process $15,000

Less Closing Work In Process ($13,000)

Cost of Goods Manufactured $152,000

Part d

Cost of Goods Sold

Beginning Finished goods Inventory $16,000

Add Cost of Goods Manufactured $152,000

Less Ending Finished Goods Inventory ($12,000)

Cost of Goods Sold $156,000

Explanation:

The following steps must be done to reach the cost of goods sold :

Use the Manufacturing Cost Schedule to calculate the Cost of Goods Manufactured
Use the Finished Goods Inventory Account to calculate the Cost of Goods Sold.

See the calculations and schedules prepared above.

8 0

2 years ago