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3 years ago

Comparing a static planning budget to actual costs is not a good way to assess whether variable costs are under control. T/F

Business

1 answer:

pav-90 [236]3 years ago

3 0

Answer: False

Explanation: Static budget refers to that budget which is made for the upcoming period. A static budget incorporates anticipated values of inputs and outputs in it. It does sometimes assumes extreme business environment conditions.

Therefore, it is not feasible to compare the actual budget with the static plan as there is a high chance that both will differ by a high amount.

Hence, the given statement is false.

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Turnbull Corp. is in the process of constructing a new plant at a cost of $30 million. It expects the project to generate cash f

Nataliya [291]

Answer:

The net present value of this project is $13,587,962.96

Explanation:

The Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows from a decision. A positive NPV indicates a profitable investment and a negative the opposite.

We can be work out the NPV of Turnbull Corp as follows

Present Value

Year 1 13000,000× *(1.2^(-1) = 10,833,333.3

Year 2 23,000,000 × 1.2^(-2) = 15,972,222.22

Year 3 29,000,000 × 1.2^( -3) = 16,782,407.41

Total PV of cash inflows 43,587,963.0

Less the PV of cash outflow (30,000,000)

Net Present Value (NPV) 13,587,962.96

The net present value of this project is $13,587,962.96

8 0

3 years ago

Read 2 more answers

You have just received a windfall from an investment you made in a friend's business. He will be paying you at the end of this

ohaa [14]

Answer:

a. $80,318.70

b. $97,568.57

Explanation:

Here is the full question :

You have just received a windfall from an investment you made in a friend's business. She will be paying you $ 15 comma 555 at the end of this year, $ 31 comma 110 at the end of next year, and $ 46 comma 665 at the end of the year after that (three years from today). The interest rate is 6.7 % per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)?

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = $ 15,555

Cash flow in year 2 = $31,110

Cash flow in year 3 = $ 46,665

I = 6.7%

Present value = $80,318.70

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value

P = Present value

R = interest rate

N = number of years

$80,318.70(1.067)^3 = $97,568.57

3 0

3 years ago

List six elements that should be addressed in a company’s marketing strategy

mario62 [17]

Hey im trying to answer it, it keeps saying im adding a link or bad words. Im new here so im not sure what to do about that. Did you maybe do something to cause that?

8 0

3 years ago

Golden years vitamin corporation targets consumers living in florida who are over age 65. golden years is using __________ segme

aalyn [17]

The answer is geodemographic segmentation. This is a multivariate measurable characterization strategy for finding whether the people of a populace fall into various gatherings by making quantitative examinations of numerous attributes with the presumption that the distinctions inside any gathering ought to be not as much as the contrasts between gatherings.

7 0

3 years ago

A company makes tools, such as hammer and tape measures. One of their primary raw materials is steel and if they run out of stee

Sedbober [7]

Answer:

D. continuous review system

Explanation:

In the context of manufacturing it seems that the system being described would be a continuous review system. Like mentioned in the question this is a system that automatically adjusts the stock level in real time when a product moves in or out of stock, and automatically triggers an order for more stock as soon as the stock level hits a low quantity point is hit.

3 0

3 years ago