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1 year ago

Any changes to a firm's projected future cash flows that are caused by adding a new project are referred to as:________

Business

1 answer:

My name is Ann [436]1 year ago

8 0

The additional operating cash flow after a new project is called incremental cashflow

The increased operating cash flow that a company obtains as a result of taking on a new project is known as incremental cash flow. If the project is approved, the company will experience an increase in cash flow, which is known as a positive incremental cash flow. A project should receive funding from an organization if the incremental cash flow is positive.

When examining incremental cash flows, it is important to take into account several factors, including the original investment, cash flows from taking on the project, terminal cost or value, and the scope and time of the project. The net cash flow from all cash inflows and outflows during a certain period and between two or more company decisions is known as incremental cash flow.

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The following partially completed process cost summary describes the July production activities of Ashad Company. Its production

Gelneren [198K]

Answer:

Explanation:

We solve this prblem in three steps

Step#1

In this step we will prepare the summary of units produces and trasffered and units in closing stock

Opening units 8000

Started 133000

141000

Transffered 122000

Closing 19000

Step#2

We will prepare production and cost table, total cost will be divided by the total units produced to identify the cost per unit incurred on material, labor and overheads.

Cost opening Current Total Complete Closing Equiv. Cost

Head Cost Cost Cost units WIP Units Per unit

Material 38,600 751,000 789,600 122,000 19,000 141,000 5.6000

Labor 1,480 138,820 140,300 122,000 13,300 135,300 1.0370

O.H 2,960 267,640 270,600 122,000 13,300 135,300 2.0000

Step-3

In this process we will calculate the cost incurred during the period.

Complete 122,000 8.64 1,053,708

Closing Wip

Material 19,000 5.60 106,400

Labor 13,300 1.04 13,792

Overheads 13,300 2.00 26,600

146,792

Total Cost 1,200,500

4 0

3 years ago

A movie studio has some costs it incurs even if it produces no movies at all in a given year. Think of these as the costs of hav

joja [24]

Explanation:

Part 1 : <u>True</u>, from the details provided about the movie studio total cost last year indicates after substractions of the differences in total

3rd movie cost - 2nd = 132-84 = 48 million

Therefore, the variable costs should greater than or equal to $47 million, but less than $255 million.

Part 2 : <u>False</u>, the marginal cost of producing the first movie was $45 million. And there were three movies made by the firm.

Therefore, the firm's variable costs of producing all three movies last year would be

45 x 3 = 135 million

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3 years ago

Selling the bonds at a premium has the effect of

ludmilkaskok [199]

Answer: Selling the bonds at a premium has the effect of causing the cost of borrowing money to be lower than the bond when interest is paid.

Explanation: When a bond is traded above the par value, it is being sold at premium. Since the bond is sold above it, the interest rate is higher but the cost to borrow money is lower. Purchasing a bond a premium is expensive because it is above market value but selling a bond at premium contributes to more money made off of the sale.

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4 years ago

"SMART" goals stands for: A. Specific, measurable, attainable, results-oriented, and time bound B. Specific, merit-based, accept

dedylja [7]

Answer:The answer is A

Explanation:

SMART are five steps in setting a business goal, S means specific, M means measurable A means Attainable / Achievement, R means Realistic/ Result Oriented, T means Time based

Specific : A specific goal has a much greater chance of being accomplished than general goal.great goal are well focused. In order to set a specific goal, the following questions must be answered such as who is involved? , what do I want to accomplish? What are the requirements needed to achieve the goal? What are the purpose of accomplishing the goal?

Measurable : This established the basis for measuring the level of progress towards the accomplishment of the goal.when a goal is measured, it enables the goal setter to stay on track to reach the target goal.it spurs the goal setter to continue the effort required to accomplish the goal. In measuring a goal questions such as how much? how many? how will I know when it is accomplished? must be answered.

Attainable : When a business goal is identified, it is important to begin to figure out ways to achieve the goal. The goal setter has to develop the attributes, abilities, skills,and the financial capacity to reach the goal. The goal can be attainable, when the goal setter plan the step wisely and also established a framework that allows the carrying out of the steps so outlined.

Realistic / Result Oriented : The business goal can be realistic or result oriented, when such a goal represents objective ahead which the goal setter are both willing and able to work towards. A goal can be both high and realistic, the goal setter is the one to decide just how high the goal is to know the substantial progress that had been made.

Time based: A goal should be within a specified time frame within which when such a goal is expected to have been accomplished.

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3 years ago

A vertical analysis calculates percentages to compare the parts of an individual statement to the whole. For example, on an inco

Ray Of Light [21]

Answer:

False

Explanation:

On an income statement, each item should be shown as a percentage of total sales (not net sales).

A vertical analysis uses percentages to compare different items one a financial statement using a base account. Total sales is used as the base account on an income statement, and total assets are used as the base account on a balance sheet.

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3 years ago