Answer:
d. One defect of the IRR method versus the NPV is that the IRR does not take proper account of differences in the sizes of projects.
CORRECT As the project yields over time can differ. This generates that projects with a lower IRR can achieve a higher NPV at lower rates.
There is a crossover point after which a projects NPV are equal and from there the one with higher IRR obtains better NPV
Explanation:
a. One defect of the IRR method versus the NPV is that the IRR does not take account of the time value of money.
FALSE both method consider time value of money
b. One defect of the IRR method versus the NPV is that the IRR does not take account of the cost of capital
FALSE The IRR can be compared against the cost of capital to indicate wether or not a project should be preferable
.c. One defect of the IRR method versus the NPV is that the IRR values a dollar received today the same as a dollar that will not be received until sometime in the future.
FALSE IRR considers the time value of money
e. One defect of the IRR method versus the NPV is that the IRR does not take account of cash flows over a project's full life.
FALSE it considers all the cash flows over the project's full life.
Answer:
e. Working to ensure that all variances are favorable.
Explanation:
the steps in effective management of variance analysis
Identifying questions and their explanations
Preparing standard cost performance reports
Taking corrective and strategic actions
Computing and analyzing variances
So the option is E.
Working to ensure that all variances are favorable.
Answer:
The cost of goods sold is $4,800
Explanation:
Given,
Beginning Inventory = $1,000
Ending Inventory = $1,200
Cost of goods manufactured = $5,000
Cost of goods sold = Beginning Inventory + Cost of goods manufactured - Ending Inventory.
Cost of goods sold = $1,000 + $5,000 - $1,200
Cost of goods sold = $4,800
Answer:
A. EPS reports the amount of income (loss) for each share of the company's issued common stock.
Explanation:
As we know that
Earning per share (EPS) is
= (Net income - preference dividend) ÷ (Number of outstanding shares)
According to this, the d option is correct also the b option and c are correct as it represents if there is an income from continuing operations so it should be reported in the income statement and it is most widely used for all the business
But the last option is not correct as earning per share reports the income or loss for each and every share based on the outstanding common stock
Hence, the option A is not correct
Answer:
The answer is: True
Explanation:
The profit margin of a business can be calculated using the following formula:
- gross profit margin = (gross profit / net sales ) x 100
- net profit margin = (net income / net sales) x 100
The difference between them is that the gross profit margin only considers the difference between net sales and COGS, while the net profit margin includes other expenses.
