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1 year ago

Which one of the following statements is correct concerning the payback rule?

1 answer:

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The correct concerning the payback rule is rule is flawed because it ignores all cash flows after some arbitrary point in time.

Payback period in capital budgeting refers to the time required to recover funds spent on an investment or to reach breakeven. Example: If at the beginning of year 1 he invests $1,000 and at the end of year 1 and his second year he earns $500, it pays for itself within 2 years.

The number of years it will take to recover the money invested. For example, if it takes 5 years to recover the cost of an investment, the payback period is he 5 years.

Payback period is defined as the number of years required to recover the original cash investment. In other words, the period during which a machine, plant, or other investment has generated sufficient net income to cover its investment costs.

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Delta Manufacturing has budgeted the following unit sales: 2019 Units April 25,000 May 40,000 June 60,000 July 45,000 Of the uni

Greeley [361]

Answer:

The budgeted sales for coastal division for second quarter 2019 is $750,000

The budgeted sales for central division for second quarter 2019 is $900,000

Explanation:

Coastal division sales budget for the second quarter 2019

Months Quantity sold price total revenue

April 25,000*40%=10,000 $15 $150,000

May 40,000*40%=16000 $15 $240,000

June 60,000*40%=24000 $15 $360,000

Total coastal division budgeted sales for second quarter $750,000

Central division sales budget for the second quarter 2019

Months Quantity sold price total revenue

April 25,000*60%=15,000 $12 $180,000

May 40,000*60%=24,000 $12 $288,000

June 60,000*60%=36,000 $12 $432,000

Total coastal division budgeted sales for second quarter $900,000

8 0

3 years ago

Read 2 more answers

Ben and Chris combined their love of football with a business venture. They purchased a small portable cart and began selling fo

wolverine [178]

Answer: Option C

Explanation: Environmental circumstances refers to the threats and opportunities that arise from political and economical unstability. These are highly fluctuating factors and can affect the business highly.

In the given case, the business of Ben and Chris slowed down due to the economic breakdown in the country. These factors are inescapable and affect all the businesses in the economy.

Thus, from the above we can conclude that the correct option is C.

4 0

3 years ago

Lupine Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. T

Anna [14]

Answer:

Allocated MOH= $420

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (253,600/31,700) + 6

Predetermined manufacturing overhead rate= $14 per machine hour

<u>Now, we can allocate overhead to Job L716:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 14*30

Allocated MOH= $420

5 0

3 years ago

Whenever there is a shortage at a particular price, the quantity sold at that price will equal:_____.

Luda [366]

Whenever there is a shortage at a particular price, the quantity sold at that price will equal <u>more than the quantity supplied at that particular price.</u>

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Magnitude (how a lot) and multitude (what number of), the two primary types of portions, are similarly divided as mathematical and bodily. In formal terms, quantities—their ratios, proportions, order, and formal relationships of equality and inequality—are studied by using arithmetic.

Quantity, similar to variety, can be used for singular or plural nouns that you may depend on or degree. the principle distinction is that it is satisfactory to apply an amount whilst you're speakme approximately an inanimate object. but, there are instances wherein you may use quantity and wide variety interchangeably, especially whilst the noun is plural.

Quality is a judgment of how exceptional something or a person is. An example of best is a product that might not ruin without problems. An example of nice is a nicely-made product. diploma or grade of excellence.

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7 0

1 year ago

Audits of financial statements are designed to obtain reasonable assurance of detecting misstatement due to?

alisha [4.7K]

Answer:

Errors, fraud, and noncompliance with laws with a direct effect on financial statement amounts.

<h3>How does the auditor obtain reasonable assurance?</h3>

In order to obtain reasonable assurance, the auditor shall obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the audit opinion.
Reasonable assurance is obtained when the auditor has thereby reduced audit risk to an acceptably low level.

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5 0

1 year ago