Answer:
Option B is the correct answer,1.05
Explanation:
Present value index can be computed using the below formula:
present value index=present value of cash inflows/initial amount invested
present value of cash inflows=annual net cash flow*present value factor of annuity
annual net cash flow=$93,750
present value factor of annuity=4.212
present value of cash inflows=$93,750*4.212=$394,875.00
initial amount invested is $375,000
present value index=$394,875.00/$375,000
=1.053
The present value index of this project is approximately 1.05,which is the option B in the multiple choices
Answer:
Option B
Cost of goods reported =$ 125,000
Explanation:
<em>Overheads are charged to units produced by the means of using an estimated overhead absorption rate. This rate is computed using budgeted overhead and budgeted activity level.
</em>
As a result of this, overhead charged to total units product might be over or under absorbed compared to the actual amount incurred.
<em>The under applied overhead implies that the applied overhead is less than the actual overhead. </em>
This implies that the cost of the goods are under valued. Hence, to accurately valued them, the under applied overhead would be added to the cost of the goods.
Cost of goods reported = cost of goods + under applied overhead
= 120,000 + 5,000 = 125,000
Cost of goods reported =$ 125,000
Answer:
d. Revenue recognition
Explanation:
The principle of revenue recognition occurs when the revenue is recognized or earned whether cash is obtained or not and it also meets the accounting accrual basis. Realizable here implies that the customer receives the product but the payment was made afterward.
Since the given scenario reflects the violation of the revenue recognition principle.
In a SWOT stands for: Strength, Weakness, Opportunity and Threat. SWO are internal factors while T is an external factor. So if you look at your choices, products, customers and employees are internal and only one is external, which is Competing companies.
The answer is C.