Answer:
Option (b) is not true.
Explanation:
In a periodic system, the costs of acquisition of inventory are not directly debited to an inventory account; they are usually updated periodically. It is a system where the cost is added in the inventory account at the end of the period only, that is why option (b) is incorrect the cost of inventory or acquisitions are not added directly. Perpetual system is a technique where inventory acquisition cost indirectly added to an inventory account.
The relevant cost of the 160 kilograms of the raw material when deciding whether to proceed with the special project is $1,029.
<h3>Relevant cost</h3>
Using this formula
Relevant cost=(Numbers of kilogram of raw material × Discounted price per kilogram)- Delivery cost
Let plug in the formula
Relevant cost=( 160 kilograms× $6.95 per kilogram) -$83
Relevant cost=$1,112-$83
Relevant cost=$1,029
Therefore the relevant cost of the 160 kilograms of the raw material when deciding whether to proceed with the special project is $1,029.
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Answer:
C. 1.20
Explanation:
The total net cash flow consist of net cash flows from 3 activities namely; Operating activities, Investing activities and Financing activities.
Let the cash flows from operating activities be y
Therefore,
123,000 = y + 66,480 + 30,780
y = 123,000 - 66,480 - 30,780
y = 25,740
Current liabilities = (23,400 + 19,500)/2
= 21450
The company's operating cash flows to current liabilities ratio
= 25,740
/21450
= 1.20
Answer: profitability
Explanation: The internal rate of return method differs from the net present value method in that it results in finding the profitability of the potential investment.
In capital budgeting which is the process by which companies determine whether a new investment or expansion opportunity is worthwhile and if undertaken, could either yield net profits or losses for the company, both the net present value (NPV) (present value of cash inflows minus the present value of cash outflows over a given period time) and the internal rate of return (IRR) methods are employed.
How does the IRR method determine profitability? - This it does by using a percentage value rather than a dollar amount and therefore is advantageous in representing the possible returns of investments by comparing it with other alternative investments.
Answer: Prospecting stage
Explanation:
The prospecting stage is one of the first step in the personal selling process which basically used for identifying the efficient consumers and also developed the customer database in the system for the purpose of communication.
The prospecting stage is basically refers to the database, social contacts, various types of trading show that are used for locating the potential consumers according to the requirement.
Therefore, Prospecting stage is the correct answer.
