Answer:
c. the average rate of return method includes the entire amount of income earned over the life of the proposal.
Explanation:
the average rate of return is a capital budgeting method.
Average rate of return = Average net income / Average book value
Average book value = (cost of equipment - salvage value) / 2
From the above formula, it can be seen that the entire income earned over the life of the project is used when calculating average rate of return.
the average rate of return method does not consider the timing of the expected cash flows. or use present values unlike the net present value and internal rate of return.
Net income is used instead of expected cash flows when calculating ARR
Answer:
$30,000
Explanation:
A supplemental disclosure of cash flow information requires that all the cash paid in interest during the period must be disclosed.
In Ash's case:
beginning balance interest payable account $15,000
+ interest expense during the year $20,000
<u>- ending balance interest payable account ($5,000) </u>
supplemental disclosure = $30,000
The correct answer is the intensive distribution. An
intensive distribution is being defined as having to get products to many
outlets as possible by which the consumers are likely to encounter and see the
product everywhere that they may go to.
The answer is; "these sites have <span>increased the cross-price elasticity for substitute products".
</span>
When we evaluate the responsiveness
of the demand for any good towards the change in the price of a related good
is known as cross price elasticity of demand and it is
always measured in terms of percentage.
Answer:
Value of closing inventory = $ 28,125.00
Explanation:
To value inventory, we multiply the cost per equivalent unit of production (cost per EUP) by the the number of equivalent units(EUP) for each of the cost element.
So the value of the closing inventory, is determined as follows:
Value of inventory = cost per E.U.P × number of E.U.P
Material = $2.50 × 4,500 = 11,250.00
Labour and overhead= $3.75 × 4,500 = 16,875.00
Total amount of work in progress
= 11,250 + 16, 875
= $ 28,125.00
