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Murrr4er [49]
3 years ago
9

The Shoe Box is considering adding a new line of winter footwear to its product lineup. When analyzing the viability of this add

ition, the company should include all of the following in its analysis with the exception of________________.
A)any expected changes in the sales levels of current products caused by adding the new productline.
B)cost of new display counters for the additional winter footwear.
C)increased taxes from winter footwear profits.
D)the research and development costs to produce the current winter footwear samples.
E) the expected revenue from winter footwear sales.
Business
1 answer:
Sindrei [870]3 years ago
7 0

Answer:

D)the research and development costs to produce the current winter footwear samples.

Explanation:

Research and development costs associated with the current winter footwear samples will not impact the performance of the proposed new line.

When analyzing the viability of the new product line up, the company should only consider the projected expenses and revenues arising from the project. A project is viable if its benefits outweigh its shortcomings. One way of establishing viability is by doing a cost-benefit analysis.

For the Shoe Box company, the new project line may have some effects on the sales of current products. The new projects will demand new counters. The company must also consider expected revenues and taxes. All these have elements of cost and benefits directly associated with the proposed product line.

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Is interest revenue a liability or an asset?

If a company anticipates receiving the interest payment within the year, it typically records the interest receivable as a current asset on its balance sheet. Companies that collect interest from loans view this revenue as a significant source of income that belongs at the top of the income statement. It is the price of taking out a loan from a bank, financial institution, bond buyer, or another lender. In order to assist a business finance its operations, such as the acquisition of rival businesses or machinery, plant, and property, interest expense is incurred.

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Answer:

a. At lower levels, management have fewer controllable costs

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What is joint tenancy?
NeTakaya

Answer:

Explanation:

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