Answer:
B) Increases profits by $700.
Explanation:
We must perform an incremental analysis of the costs and revenues generated by the alternative course of action which is offering the package:
Current income:
ballroom rent $4,500
<u>extras $800</u>
total current income = $5,300
Alternative action income:
wedding package $6,000
opportunity cost ballroom rent $4,500
<u>opportunity cost extras $800 </u>
net income increase = $700
Answer:
The alternative that should be chosen assuming identical replacement is:
Alternative B.
Explanation:
a) Data and Calculations:
Alternatives:
A B
First Cost $5,000 $9,200
Uniform Annual Benefit $1,750 $1,850
Useful life, in years 4 8
Rate of return 7% 7%
Annuity factor 3.387 5.971
Present value of annuity $5,927.25 $11,046.35
Net cash flow $927.25 $1,846.35
b) Alternative B yields a higher return than Alternative A. Since the two alternatives are based on the same rate of return, Alternative B will bring in a higher annual benefit, even when discounted to the present value.
Answer:
Unsafe food creates a vicious cycle of disease and malnutrition, particularly affecting infants, young children, elderly and the sick. Foodborne diseases impede socioeconomic development by straining health care systems, and harming national economies, tourism and trade.
Answer:
- This type of fraud is check tampering
- It amounts to 20.1% of fraud cases in small businesses, and 8.4% of fraud in large businesses
- This type of fraud can be prevented by rotating employees that handle check issuance to vendors, review of budget versus actual expenditure, monitoring of audit trail to see if beneficiary was changed, daily statement download for reconciliation, and restriction of functions for example a employee that issues checks should not also reconcile bank statement.
Explanation:
Check tampering is a very common fraud that involves changing the beneficiary of a valid check so that funds can be diverted.
In the given scenario the accounts payable clerk was able to change checks to his name in order to divert $10,000. This was only discovered by chance when an employee noticed the change in name.
Various internal control measures can be taken to prevent this and they are listed above
B. secrecy; communication
