Answer: OPTION C
Explanation: Observation is a data collection method under which the analyst tries to gather the knowledge about the subject data by observing the different phenomena related to the data .
A. Purpose must be disguised as the observations are done for the collection of data and can affect the judgement of observer.
B. A natural setting is necessary or there might be some unfair results in observation.
C. Anonymity is not desired as it could hide some important perspectives of the subject leading to false observations.
D. Memory decay is a factor in considering observation as it can result in improper results.
E. Observation can not be done on quantitative data.
Answer: A: remain constant on a per-unit basis but change in total based on activity level
Explanation: A Variable cost is a cost an organisation incurs that is affected by fluctuations in production and so changes between given periods.
variable costs are not consistent but fluctuates in relation to the production activity of an organisation. Variable costs increases as production level increases and vise versa.
Costs associated with variable costs are those that contribute directly to the goods or service being offered by a business and therefore differ from period to period.
The total costs a company incurs are divided into Variable costs and Fixed costs. variable costs are costs incurred on raw materials, commission, labour, packaging and shipping while fixed costs are costs incurred on rent, salaries, repairs and maintenance, electricity etc.
Answer:
added back to net income in the indirect method
Explanation:
Depreciation is an expense indicating a reduction in the value of the capital assets due to tear and wear, obsolescence, consumption, time span, etc. It's shown on the income statement debit side. It is a non-cash item that has no effect on the cash balance.
So while reporting operating activities using indirect method we added back the depreciation expense to net income
Answer:
-$86.05
Explanation:
The computation of the net present value is shown below:
Year Cash flow Discount factor @11.5 Present value
0 $379 M 1 -$379 M
1 $105 M 0.8968609865 $94.17 M
2 $78 M 0.8043596292 $62.74 M
3 $79 M 0.7213987706 $56.27 M
4 $65 M 0.6469944131 $42.05 M
5 $65 M 0.5802640476 $37.72 M
NPV -$86.05 (Difference)
The discount factor should be computed below
= 1 ÷ (1 + rate) ^ years
