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2 years ago

Which statement below best describes a profit center?

1 answer:

8 0

Answer: (B) The authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply and significant control over the amount of invested capital.

Explanation:

The profit center is the type of center in which the authority makes various types of decisions that affect the major profits. It also include the power for choosing the market and the sources.

The profit center is the type of business unit which basically generate the various type of revenue and cost. It is the type of department that generate the income by using the organization resources. The profit center has the significant control on the amount of the invested capital.

Therefore, Option (B) is correct.

You might be interested in

Schnusenberg Corporation just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate

valkas [14]

Answer:

$9.74

D0 $0.75

b 1.70

rRF 4.5%

rM 10.5%

g 6.5%

D1 = D0(1 + g) =$0.7988

rS = rRF + b(rM - RRF) =14.7%

P0 = D1/(rS - g)=$9.7

Explanation:

5 0

2 years ago

Poor internal compliance with supply processes may indicate that internal customers do not trust the supply process or the suppl

bagirrra123 [75]

That statement is True

Internal Compliance is carried out to ensure that all process are done according to regulated rules and standard

Poor internal compliance could indicate that certain process is not carried out according to standard, which could damage the trust of internal customers

3 0

1 year ago

Two mutually exclusive projects have 3-year lives and a required rate of return of 10.5 percent. Project A costs $75,000 and has

Norma-Jean [14]

Answer:

Both projects should be rejected

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator:

For project A,

Cash flow in year zero = $75,000

Cash flow in year one = $18,500

Cash flow in year two = $42,900

Cash flow in year three = $28,600

IRR = 9.12%

For project B,

Cash flow in year zero = $-72,000

Cash flow in year one = $22,000

Cash flow in year two = $38,000

Cash flow in year three = $26,500

IRR = 9.48%

The decision rule on if to invest or not is if IRR > r

For both investments IRR is less than rate of return

9.12% < 10.50%

9.48% < 10.50%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button, and the compute button.

I hope my answer helps you

8 0

2 years ago

Sunland Company took a physical inventory on December 31 and determined that goods costing $190,500 were on hand. Not included i

Sergio [31]

Answer:

$241,500

Explanation:

Calculation for What amount should Sunland report as its December 31 inventory

December 31 inventory per physical count $190,500

Add Goods-in-transit purchased FOB shipping point $29,000

Add Goods-in-transit sold FOB destination $22,000

December 31 Inventory $241,500

($190,500 + $29,000 + $22,000 = $241,500)

Therefore What amount should Sunland report as its December 31 inventory is $241,500

8 0

1 year ago

If it takes a fan 20 minutes to walk to her seat in the last section in the stadium and it takes 5 minutes to get to the lowest-

jenyasd209 [6]

The last section in the stadium
t1 = 20min
the lowest-level
t2 = 5min
The average between those two sections of the stadium to find a seat is:
A = (t1 + t2) / (2)
A = ((20) + (5)) / (2)
A = (25) / (2)
A = 12.5min
Answer:
The average time to find a seat in these two sections at the stadium is
12.5min

5 0

1 year ago