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4 years ago

Which of the following is a poor label for a category level file folder?

1 answer:

6 0

For a level file folder, your categorization must be clear and precise so it would be easier for you to store your information.

a poor label for this is only using an alphabet rather than full word

Bad example : Using the letter 'R' to replace 'reimbursement' folder, it's best to just label it as reinbursement

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The MM theory with taxes implies that firms should issue maximum debt.There is a difference between theory and practice because:

mylen [45]

Answer:

There is a difference between theory and practice because the theory states with taxes implies that firms should issue maximum debt but in practice, this does not occur because it will result in bankruptcy if firms are issuing maximum debt. There should be a balance between how much debt is acquired and how much equity is taken. Therefore bankruptcy becomes a cause of concern if maximum debt is issued.

5 0

3 years ago

A given investment project will cost RM400,000. Incremental annual cash flows after taxes are expected to be RM80,000 per year f

erastova [34]

Answer:

Based on the profitability index method, the investment should not be accepted.

It does not produce enough cash flows to justify the investment.

Explanation:

The profitability index method measures the present value of benefits for by dividing the present value of benefits by the present of initial investments.

The present value of initial investment in this project remains RM400,000. The present value of incremental annual cash flows of RM80,000 after taxes for 5 years will be equal to:

RM80,000 * 3.668 = RM293,440

Then the next step is to divide the present value of benefits by the initial investment as follows:

RM293,440/RM400,000 = 0.7336 = 73.36%

The implication is that the present value of the benefits is less than the initial investment costs. The project should then be rejected.

6 0

3 years ago

Sara, a security analyst, is trying to prove to management what costs they could incur if their customer database was breached.

djyliett [7]

Answer:

Total estimated breached cost = $3,750

Explanation:

Given:

Total records database contain = 250 record

Cost per record for a breach = $300

Estimated breached record = 5% = 0.05

Total estimated breached cost = ?

Computation of total estimated breached record :

Total estimated breached record = Total records database contain × Estimated breached record

Total estimated breached record = 250 × 0.05

Total estimated breached record = 12.5

Computation of total estimated breached cost:

Total estimated breached cost = Total estimated breached record × Cost per record for a breach

Total estimated breached cost = 12.5 × $300

Total estimated breached cost = $3,750

7 0

3 years ago

Seasons Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion

Alekssandra [29.7K]

Answer:

Explanation:

total contract price is $ 18,600,000

season construction using percentage of completion method.

Amount of revenue & construction expense for the year ended december 31, 2020 will be

25% of $ 18,600,000 revenue = $ 4,650,000

25% of $ 18,750,000 total cost = $5,250,000

5 0

4 years ago

Aggies Candle Factory has recently been awarded a new contract with a large retailor in Doylestown. Demand for the candles is 25

Sergio039 [100]

Answer: Option A

Explanation:

From the question, the demand given is 250,000

For Option A,

Fixed cost = $25000

Variable cost = $0.1 per candle

Total cost = Fixed cost + Variable cost

Total cost = $25000 + ($0.1 × 250,000)

= $25,000 + $25,000

= $50,000

For Option B,

Fixed cost = $10000,

Variable cost = $0.5 per candle

Total cost = Fixed cost + Variable cost

Total cost = $10000 + ($0.5 × 250,000)

= $10,000 + $125,000

= $135,000

Therefore, the board should select option A as the total cost is cheaper than option B.

6 0

3 years ago