Answer:
The conditions under which each funding method for paying for IT system expenses would be recommended are:
Allocation method is preferred to other methods when actual usage cannot be captured but, some other cost drivers can be used as the allocation bases.
Chargeback method works better than others when actual usage by each unit can be accurately captured.
Explanation:
The Allocation Funding Method charges IT costs to individuals, departments, or business units based on revenues, number of employees, and other cost drivers and not based on usage. It is often used when actual usage cannot be recorded.
The chargeback method charges IT costs to individuals, departments, or business units based on their actual usage of the IT services. With wide variation in IT usage, business units need to be charged their actual costs consumed.
The corporate budget method allocates IT cost based on a periodic predetermined rate. It is used where unit managers need to be given control over their budgets, enabling them to search for cost-saving technologies.
Economic cartoons is your answer
An installment payment is equal payments every month, meaning it is the correct answer. (B)
Answer:
b. should be; should definitely not be
Explanation:
When conducting a capital budgeting analysis and attempting to account for effects of exchange rate movements for a foreign project, inflation <u>should be </u>included explicitly in the cash flow analysis, and debt payments by the subsidiary <u>should definitely not be</u> included explicitly in the cash flow analysis.
Inflation and movements in exchange rates reduces and impacts the value of cashflows and the real returns to be derived from an investment and must be considered in every investment analysis to take account of the time value of money.
Debt payments are NOT a requirement in investment analysis because the interest rate of the loans have been factored into the cost of capital with which the cashflows have been discounted
