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anyanavicka [17]
4 years ago
7

Which of the following should not be included in the analysis of a proposed investment?A. The current market value of an existin

g building to be used in the project.B. The amount paid 4 years ago for an existing building to be used in the project.C. The expected after-tax salvage value at the end of a project of an existing building to be used in the project.D. The net working capital balance remaining at the end of the project.
Business
1 answer:
barxatty [35]4 years ago
7 0

Answer:

B. The amount paid 4 years ago for an existing building to be used in the project

Explanation:

As this value is sunk it should be ignored. The company should think on project for the building considering his market value.

Also, the amount of working capital (used in the project in form of accounts receivable, account payable, prepaid and others) is important as this release increase the cash flow of the project.

The salvage value is also important as will provide cash flow as well.

As general rule, always look into the future to evaluate the projects never at historic cost.

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The specific identification method of costing inventories is used when the company sells large quantities of relatively low-cost
Mila [183]

Answer:

company sells a limited quantity of high-unit cost items.

Explanation:

A specific identification method can be defined as a method used for determining the ending inventories cost.

Basically, this type of method for costing inventories typically involves doing a well-detailed physical count of each goods bought on a specific date or a particular period of time, so as to determine the exact number of goods remaining by the end of the year's inventory. Therefore, each of the goods purchased are tagged with their unit price and any other additional charges.

Hence, the specific identification method of costing inventories is used when the company sells a limited quantity of high-unit cost items.

7 0
3 years ago
You have spent weeks designing the project, gathering data and analyzing it. Now it is time to present your findings to senior e
Andrew [12]

Answer:

After spending weeks on a project, gathering data, followed by an analysis, when you are going to present your findings to the senior executes, In the very beginning of your report, in the executive summary, you can present and manifest and guide them about all the information, what they should know in making a decision

Explanation:

After spending weeks on a project, gathering data, followed by an analysis, when you are going to present your findings to the senior executes, you will have following 5 different course of actions;

Option 1: You can give them whole details through which you can have gone, meanwhile your discussion with the senior executives.

Option 2: Summary of the report in form of data tables can be provided without any recommendation and course of action suggested.

Option 3: You can also mention the information regarding the respondents of the research, if executives want to have follow-up and want to know to whom you have got your questionnaires filled up.

Option 4: In the very beginning, in the executive summary of the report, you can present and manifest and guide them about all the information, what they should know in making a decision

Option 5: You main focus could be primarily on the statistical analysis in your presentation, followed by the main recommendations at the end.

BEST POSSIBLE OPTION: As the senior executives are having very less time, therefore, it would be best for you present them with the information in the very beginning in the executive summary, in addition, all the information which they can consider to make a decision.

To recapitulate, keep the information needed to be considered for taking an action or decision, in your executive summary, in a best possible simple and short way.

5 0
4 years ago
Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Fashio
horrorfan [7]

Answer:

A) Increase $137,500

Explanation:

Calculation for how will operating income be affected

CHANGE IN OPERATING INCOME

Sales Revenue (Additional) $850,000

(250 %* 340,000)

Less Variable expenses (Additional) ($587,500)

(250 % *$ 235,000)

Contribution Margin $ 262,500

($850,000-$587,500)

Less Fixed Expenses ($76,000)

($262,500-$76,000)

Operating Income $ 186,500

( $ 262,500-$76,000)

Less Previous Operating Income ($49,000)

Operating Income $137,500 Increase

($ 186,500-$49,000)

Therefore the operating income will increase by $137,500

7 0
3 years ago
On November 30, 2020, a U.S. company purchased merchandise on credit from a Swiss supplier at an invoice price of CHF1,000, when
Ivanshal [37]

Answer:

The merchandise should be reported on the U.S. Company's December 31, 2020 balance sheet at:

b. $1,050

Explanation:

a) Data and Calculations:

November 30, 2020 Inventory purchase = CHF1,000

Exchange rate on this date = $1.05/CHF

Inventory worth = $1.05 * CHF1,000 = $1,050

b) The inventory should be reported on December 31, 2020 at $1,050.  It does not need to be reported at a value above or below this.  Even, the debt owed to the Swiss supplier will be reported at this price.  It is when payment for the invoice is being made on February 1, 2021 that consideration will be given to the exchange rate at which payment is made.

5 0
3 years ago
Listed options on U.S. exchanges are available on all of the following currencies except:_________.A) Canadian dollar. B) Japane
posledela

Answer:

C

Explanation:

On the US exchanges, other world currencies are available for option contracts. The US currency is the base currency used for these options. So, the US dollar cannot be listed again for an options contracts, There cannot be an options contract of the US dollar against the US dollar

3 0
3 years ago
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