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1 year 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]1 year 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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Given the following data: Selling price per unit $ 2.00 Variable production cost per unit $ 0.30 Fixed production cost $ 3,000 S

Shkiper50 [21]

Answer:

Break Even Point in Dollars = $6,000

Explanation:

Break Even Point in Dollars = $\frac{Total \: Fixed \: Cost}{Contribution \: Per \: Unit}$ $\times$ Selling price per unit.

Total Fixed Cost = Fixed Production cost + Fixed Selling Expenses

Fixed Production Cost = $3,000

Fixed Selling Expense = $1,500

Total Fixed cost = $3,000 +$1,500 = $4,500

Contribution per unit = Selling price - Variable Cost per unit

Selling Price Per Unit = $2.00

Variable Cost Per Unit = Variable Production cost + Sales commission

Variable Production cost = $0.30

Sales Commission Cost = $0.20

Variable Cost per unit = $0.30 + $0.20 = $0.50

Contribution per unit = $2.00 - $0.50 = $1.50

Break-even point = $\frac{4,500}{1.5} \times 2 = 6,000$

Break Even Point in Dollars = $6,000

3 0

2 years ago

Read 2 more answers

E3.3 (LO 3) (Unknown Rate) HQ Ltd. purchased a used truck from Trans Auto Sales Inc. HQ paid a $4,000 down payment and signed a

ivolga24 [154]

Answer: $35,000

Explanation:

The payments of $1,033.34 at the end of every month is a constant amount which makes it an annuity.

Present value of annuity:

= Annuity * (1 - (1 + rate) ^-no. of periods) / rate

Rate needs to be made a monthly rate:

= 4%/12

= 4/12%

= 1,033.34 * ( 1 - ( 1 + 4/12%) ⁻³⁶/ 4/12%

= $35,000

Purchase price = Down payment + Present value of annuity

= 4,000 + 35,000

= $39,000

7 0

2 years ago

The slope of the _________________ is determined by the relative price of the two goods, which is calculated by taking the price

jenyasd209 [6]

Answer:

budget constraint

Explanation:

The slope of the budget constraint is determined by the relative price of the two goods, which is calculated by taking the price of one good and dividing it by the price of the other good. Intuitively, the slope of the budget constraint represents how many of the goods on the y-axis the consumer must give up in order to be able to afford one more of the goods on the x-axis. the concept of budget line or what is also called budget constraint is essential for understanding the theory of consumer’s equilibrium.

A higher indifference curve shows a higher level of satisfaction than a lower one. Therefore, a consumer in his attempt to maximize his satisfaction will try to reach the highest possible indifference curve . But in his pursuit of buying more and more goods and thus obtaining more and more satisfaction he has to work under two constraints: first, he has to pay the prices for the goods and, secondly, he has a limited money income with which to purchase the goods. Thus, how far he would go in for his purchases depends upon the prices of the goods and the money income which he has to spend on the goods.

3 0

1 year ago

Raj, a senior engineer at a manufacturing firm, leads a designing team from the home country, while the team works from the host

anzhelika [568]

Answer:

The correct option is b.

Explanation:

Telephone as the fastest approach would be using a telephone. This mode is the fastest mode of communication for Raj to communicate with his team immediately.

6 0

2 years ago

The following are sales revenues for a large utility company for years 1 through 11. Forecast revenue for years 12 through 15. B

Marina CMI [18]

Answer: i hope this helps some its all i can do for now

Explanation:

3 0

2 years ago