Answer: True
Explanation: Capital budgeting is a tool used for evaluating the profitability of long term investments by the company. In the process of capital budgeting, the incremental expected cash inflows are compared with the initial cash outflow of the project using time value of money analysis.
In time value of money analysis the expected cash inflows are discounted back to the present time by using a particular rate, and then that present value is deducted from outflow to ascertain the profit.
Answer and Explanation:
The computation is shown below;
a. Raw material price variance is
= (standard price - actual price) × actual quantity
= ($10 - $11) × ($69,300 ÷ $11)
= ($10 - $11) × 6,300
= $6,300 unfavorable
b. The raw material usage variance is
= (Standard quantity - actual quantity) × standard price
= (525 × 13 - 6,300) × $10
= $5,250 favorable
In this way it should be calculated
Answer:
C. by allowing corporations to raise funds by selling new issues and by creating a market in which owners may easily turn an investment into cash through its sale
Explanation:
Naturally, a security market is seen to permit you do more with your actual savings within your saving periods. It is seen to aid over the counter trading which is seen to occur directly between the trader and the broker. In certain cases that can be termed marketable securities, it is seen to occur due to the maturities are seen to tend to be less than one year; and at such, the buyer/broker rates at which they can be bought or sold have little effect on prices.
