All Matches
Solution Library
Expert Answer
Textbooks
Search Textbook questions, tutors and Books
Oops, something went wrong!
Change your search query and then try again
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Ask a Question
AI Tutor
New
Search
Search
Sign In
Register
study help
business
accounting for business
Questions and Answers of
Accounting for Business
Why might an organisation’s customers and suppliers need to read its financial statements? (Sections 1.2.4, 1.2.5)
What is operating profit? (Section 2.4.3)
What are intangible non-current assets? (Section 3.4.1)
State another term that is used to describe the current asset of stock. (Section 3.5.3)
State another term that is used to describe the current asset of debtors. (Section 3.5.4)
How is the stock (inventory) turnover period calculated and what is the significance of a relatively long inventory turnover period? (Section 6.6.1)
What is the difference between the two main ratios used to assess liquidity: the current ratio and the acid test ratio?(Sections 6.7.1, 6.7.3)
Sketch a graph of the total fixed cost and the fixed cost per unit. (Sections 10.2.1, 10.2.2)
What is the fundamental principle of responsibility accounting? pk5
List five important factors that should be considered in designing reports for a responsibility accounting system. pk52
How soon should accounting reports be prepared after the end of the performance measurement period?Explain. pl41
Name and describe three types of responsibility centers. pl5
Describe a segment of a business enterprise that is best treated as an expense center. List four indirect expenses that may be allocated to such an expense center. pk5
Compare and contrast an expense center and an invest- ment center. pk4
What purpose is served by setting transfer prices? dj5
What is the advantage of using investment centers as a basis for performance evaluation? uj4
Which categories of items must a segment manager have control over for the investment center concept to be applicable? mk5
What is the connection between the extent of decentralization and the investment center concept? mk5
11 . Give some of the advantages of decentralization. m4
Differentiate between a direct cost and an indirect cost of a segment. What happens to these categories if the segment to which they are related is eliminated? mk4
Is it possible for a cost to be direct to one cost object and indirect to another cost object? Explain. mk5
Describe some of the methods by which indirect expenses arc allocated to a segment. mn
Give the general formula for return on investment(ROI). What are its two components? m45
Give the three sets of definitions for income and investment that can be used in ROI calculations, and explain when each set is applicable. nj4
Give the various valuation bases that can be used for plant assets in investment center calculations. Discuss some of the advantages and disadvantages of these methods. nmk44
In what way is the use of the residual income (RI)concept superior to the use of ROI? mk41
How is residual income ( RI) determined? mk
If the RI for segment manager A is $50,000 while the RI for segment manager B is $100,000. does this necessarily mean that B is a better manager than A?Explain. mk74
Real World Question Refer to the annual report booklet. Which of Coca-Cola's geographic areas had the highest ROI in 1996? To compute the answer, use"Operating Income" for the income measure and
(Based on Appendix) Briefly discuss the two methods of allocating service department costs. n45
Define capital budgeting and explain the effects of making poor capital- budgeting decisions.
Determine the net cash inflows, after taxes, for both an asset addition and an asset replacement.
Evaluate projects using the payback period.
Evaluate projects using the unadjusted rate of return.
Evaluate projects using the net present value.
Evaluate projects using the profitability index.
Evaluate projects using the time-adjusted rate of return.
Determine, for project evaluation, the effect of an investment in working capital7. Evaluate projects using the time-adjusted rate of return.
Depreciation does not involve a cash outflow; it is deductible in arriving at federal taxable income. mk5
The price a company is going to pay for a machine is an out-of-pocket cost. mk4
Sunk costs and out-of-pocket costs are relevant to capital-budgeting decisions. n5
A formula for unadjusted rate of return is as follows: mk41 Average annual Unadjusted income after taxes rate of return Average amount of investment
When investment projects costing different amounts are being compared, the net present value does not provide a valid means by which to rank projects in order of contribution to income or
Which of the following is incorrect regarding the payback period method?a. The payback period ignores the time period beyond the payback period.b. When using payback analysis for investment deci-
When using time value of money concepts, all aspects of the investment should be considered including which of the following?a. Employee morale.b. No single time value of money method should be used
Which of the following best describes the limitations when using the unadjusted rate of return.a. Timing of cash flows is not considered.b. It allows a sunk cost, depreciation, to enter into the
Which of the following statements is (are) true regarding the profitability index?a. Only proposals with profitability indexes greater than 1.00 should be considered.b. Only proposals with
Which of the following statements is (are) true regarding net present value?a. When determining an appropriate discount rate, management uses net cash outflow.b. With projects that require an
Which of the following statements is (are) true regarding the time-adjusted rate of return?a. The first step in computing the rate of return is determining the payback period.b. The annual after-tax
How do capital expenditures differ from ordinary expenditures? nj52
What effects can capital-budgeting decisions have on a company? mk74
What effect does depreciation have on cash flow? m41
Give an example of an out-of-pocket cost and a sunk cost by describing a situation in which both are encountered. mk41
A machine is being considered for purchase. The salesperson attempting to sell the machine says that it will pay for itself in five years. What is meant by this statement? mn4
Discuss the limitations of the payback period method. mk41
What is the profitability index, and of what value is it? nmj5
What is the time-adjusted rate of return on a capital investment? mki5
What role does the cost of capital play in the timeadjusted rate of return method and in the net present value method? mk5
What is the purpose of a postaudif.' When should a postaudil he performed? mk5
A friend who knows nothing about the concepts in this chapter is considering purchasing a house for rental to students. In just a few words, what would you tell your friend to think about in making
Diane Manufacturing Company is considering investing $600,000 in new equipment with an estimated useful life of 10 years and no salvage value. The equipment is expected to produce$240,000 in cash
Zen Manufacturing Company is considering replacing a four-year-old machine with a new, advanced model. The old machine was purchased for $60,000. has an estimated useful life of 10 >ears with no
Given the following annual costs, compute the payback period for the new machine if its initial cost is $420,000. nji8 Depreciation. Labor Repairs Other costs Old Machine $18,000 72,000 New Machine $
Jefferson Company is considering investing $33,000 in a new machine. The machine is expected to last five years and to have a salvage value of $8,000. Annual before-tax net cash inflow from the
Compute the profitability index for each of the following two proposals assuming the desired minimum rate of return is 20%. Based on the profitability indexes, which proposal is better? lop75
Ross Company is considering three alternative investment proposals. Using the following information, rank the proposals in order of desirability using the payback period method. lop5 Proposal C
Simone Company is considering the purchase of a new machine costing $50,000. It is expected to save $9,000 cash per year for 10 years, has an estimated useful life of 10 years, and no salvage value.
Refer to the data in Exercise 26-7. Calculate the time-adjusted rate of return. mk4
Rank the following investments for Renate Company in order of their desirability using the(a) payback period method, (h) net present value method, and (r) time-adjusted rate of return method.
Hamlet Company is considering the purchase of a new machine that would cost $300,000 and would have an estimated useful life of 10 years with no salvage value. The new machine is expected to have
Graham Company currently uses four machines to produce 400,000 units annually. The machines were bought three years ago for $50,000 each and have an expected useful life of 10 years with no salvage
Macro Company owns five machines that it uses in its manufacturing operations. Each of the machines was purchased four years ago at a cost of $120,000. Each machine has an estimated life of 10 years
Span Fruit Compain has used a particular canning machine for several years. The machine has a zero salvage value. The company is considering buying a technologically improved machine at a cost of
Merryll. Inc., is considering three different investments involving depreciable assets with no salvage value. The following data relate to these investments: mk6 Expected Before-Tax Net Expected
Differential analysis is best described by which of the following statements :a. Determines only the difference in revenues between two alternatives.b. Analyzes opportunity costs.c. Determines only
In selecting a price for a product using differential analysis, which of the following decisions should be made?a. The highest price should always be selected.b. The price that will result in the
Which of the following decisions involve differential analysis?a. The decision to close a segment of a business.b. The decision by a record store to add videotapes to its product line.c. The decision
Assume Mikey Shoe Company is considering making special shoes just for Olympic athletes. In making this decision, how would you categorize the salary of the president of Mikey?a. Differential
Identify types of decisions that can be made using differential analysis. ku69
What is a committed fixed cost? Give some examples. ku69
What is a discretionary fixed cost? Give some examples. ku69
Give an example of a fixed cost that might be consid- ered committed for one company and discretionary for another. ku69
What is the disadvantage of a company having all committed fixed costs? Explain. ku69
What is an opportunity cost? Give some examples. ku69
What essential feature distinguishes the contribution margin income statement from the traditional income statement? ku69
Real World Question Give an example of a make-orbuy decision that you have made or someone you know has made. ku69
Real World Question Give an example in which your campus bookstore replaces one of its departments with another it currently does not have. (For example, it ku69
Real World Question Assume that McDonald's, of McDonald's fast-food restaurants, currently buys its french fries from agricultural growers and food pro- cessors. In doing so, McDonald's has decided
Real World Question Refer to The Coca-Cola Company's financial statements in the annual report booklet. Does Coca-Cola use the traditional or contribution margin format in its income statement? ku69
Real World Question Suppose that Wal-Mart, one of the fastest growing companies in the world, were to close one of its stores. Which differential revenues and costs would be affected by that
Define a budget and name several kinds of budgets.
List several benefits of a budget.
List five general princi- ples of budgeting.
Prepare a planned operating budget and its supporting budgets, such as the sales budget. production and pur- chases budgets, and other expense budgets.
Prepare flexible operat- ing budgets.
Prepare a financial budget and its support. ing budgets.
Budgets are based on more than past results. ki4
Cash budgets may cover a week or a month, sales and production budgets a month, a quarter, or a year, and general operating budgets may cover a quarter or a year. k52
The planned operating budget is developed first in units and then in dollars. k5
Planned operating budgets based on planned activity levels and flexible budgets are the same if planned activity levels and actual activity levels are not the same. ki4
Showing 1 - 100
of 1807
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last