Question: Enterprise analysis does not identify or value any complementary or detrimental actions between enterprises. True False A cost center generates both costs and revenues; a




Enterprise analysis does not identify or value any complementary or detrimental actions between enterprises. True False A cost center generates both costs and revenues; a profit center does not generate revenue, but provides services or intermediate products to cost centers in the same business. True False QUESTION 11 5 points Assume you have won the lottery (tax free!) and have the choice of receiving $1,000,000 now or $110,000 payments each year for 20 years. If the opportunity cost of capital is 6%, which alternative would you choose? Take $1,000,000 now! Take $110,000 payments! You would be indifferent as to how you received your winnings. Cannot be determined. In enterprise analysis, income and expenses are allocated among the business, similar to an: a. Enterprise budget b. Income statement c. Whole farm budget d. Statement of cash flows Profit centers have both income and expenses. True False Cost centers are not expected to generate income, but do incur costs while providing services to profit centers. True False QUESTION 18 Value-added enterprises: a. Are intended to increase net income received from a commodity after its production cycle has ended. b. Might include processing milk into food products. c. Generally add costs. d. All of the above
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