The method <span>of evaluating a capital investment project that use cash flows as a measurement basis are: </span><span>Payback period, internal rate of return, and net present value.
- PAyback period, used to determine how much asset is back after the initial saving
- internal rate of return, Used to measure potential profit from an investment
- Net present value, used to determine the worth of all company's assets</span>
Answer:
Company's net income will increase by $2500 if the product line is discontinued.
Explanation:
From the data given:
Sales 25000
variable cost (less) 19000
contribution margin 6000
Fixed costs
directed fixed costs 7000
allocated fixed costs 5000
net income -6000
Fixed cost savings 7000
rental revenue 1500
total savings if discontinued 8500
contribution margin (less) 6000
net income increased by 2500
Answer:
1. False,
2. False,
3. False,
4. True
Explanation:
1. Managerial accounting reports focuses on entire net profit and not specifically the manufacturing and non manufacturing cost, and are not specifically used in the budget process.
2. No financial accounting reports all the finance related issues in details but is not divided into sub units.
3. No managerial reports are not audited, they are for internal controls and are to follow GAAP but not mandatory requirement for audit.
4. Managers are responsible for the management of business, for this the main three steps are: Planning Directing and controlling.
Answer: credit or debit cards
Explanation:
