To project a trend that decreases rather than increases, use a step value of less than _______ for a linear trend.

Business

1 answer:

Eddi Din [679]3 years ago

7 0

Less than 0 for a linear trend, because the trend is no longer a trend but a FAD.

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Assume again that the cost of capital is 7 percent and the effective tax rate is 40 percent. How would the payback, internal rat

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Answer:

If the effective tax rate increases then the net savings coming from investments will get lowered as a result the investment will have higher payback period (The increase in effective tax rate would lower demand of the product which means there is decline in net saving arising from the sale of the product). Likewise this decrease in annual net savings will also decrease the internal rate of return which shows that their are increased chances of project rejections. The NPV method is based on cash flows and relevant costing just like IRR and payback method but the only difference is that it assumes that the cash earned would be reinvested at cost of capital. The NPV will also decrease due to increased effective tax rate.

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When total demand outpaces actual output in the economy, the economy usually enters?

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When most cars sold in the United States were produced by the Big Three auto companies, General Motors would announce its prices

photoshop1234 [79]

Answer: Price leadership

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In the given case, the general motors is practicing price leadership as they are setting the prices in the market initially which is then matched by other firms.

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3 years ago

In March, Kelly Company had the following unit production costs: materials $12 and conversion costs $8. On March 1, it had zero

pochemuha

Answer:

A) the total units to be accounted for = 23,980 + 4,600 = 28,580 units

B) the total material equivalent units = 23,980 finished units + 4,600 = 28,580 units

total conversion equivalent units = 23,980 finished units + (4,600 x 30%) = 23,980 + 1,380 = 25,360

C) cost reconciliation schedule:

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Cost of material in process

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total cost $545,840

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3 years ago

Amortization is:Select one:A. The process of allocating to expense the cost of a plant asset to the accounting periods benefitin

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Answer:

The correct answer is option B.

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Amortization is a technique used in accounting. It involves the process of spreading payment over multiple periods. In accounting, amortization refers to the allocation of the cost of intangible assets over its lifetime.

For instance, amortization of a loan means spreading the interest and principal of the loan over its lifetime. It means fixed monthly payments of interest and principal.

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