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Lunna [17]
3 years ago
11

Sensitivity analysis determines the: Multiple Choice net present value range that can be realized from a proposed project. degre

e to which a project relies on its initial costs. ideal ratio of variable costs to fixed costs for profit maximization. range of possible outcomes given that most variables are reliable only within a stated range. degree to which the net present value reacts to changes in a single variable.
Business
1 answer:
BaLLatris [955]3 years ago
3 0

Answer:

It determines the degree to which the net present value reacts to changes in a single variable

Explanation:

Sensitivity Analysis is a tool which is used in financial modeling to analyze how the net values of a set of independent variables affect a single dependent variable under certain specific conditions.

It shows how different values of the independent variable causes changes in the single dependent variable. It predicts the result of a decision given a certain range of variables.

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Melissa pellerano does consulting for the yellow pages. Her clients want to know how much of an increase in customers' awareness
tankabanditka [31]

Melissa must conduct<u> "causal research".</u>


Causal research falls under the class of conclusive research, as a result of its endeavor to uncover a circumstances and end results connection between two factors. Like descriptive research, this type of research endeavors to demonstrate a thought set forward by an individual or association. Be that as it may, it essentially varies on the two its techniques and its motivation. Where descriptive research is expansive in degree, endeavoring to more readily characterize any feeling, demeanor, or conduct held by a specific gathering.

6 0
3 years ago
Microsoft develops, produces, and markets a wide range of computer software, including the Windows operating system. On its rece
Shkiper50 [21]

Answer:

$106 million

Explanation:

                               allowance for doubtful accounts

                               debit             credit

beg. balance                                   426

bad debt                                           85        

ending balance       <u>405                        </u>

                                                        106

Since you need $106 million to balance the account, that should be the amount of bad debt written off during the current year. Allowance for doubtful accounts is a contra asset account, any debit balance increases accounts receivable while a credit balance decreases it.

6 0
3 years ago
Kingston Co. uses the percentage-of-receivables basis to record bad debt expense.
Troyanec [42]

Answer:

Explanation:

The journal entry to record the bad debt expense is shown below:

Bad debt expense A/c Dr  $2,700

      To Allowance for doubtful debts $2,700

(Being bad debt expense is recorded)

The computation of the bad debt expense is shown below:

= (Accounts receivable × estimated percentage given ) - (credit balance of Allowance for Doubtful Accounts)

= ($420,000 × 1%) -  ($1,500)

= $4,200- $1,500

= $2,700

4 0
3 years ago
When can interest be included in the acquisition cost of a plant asset?
hammer [34]

Answer:

a. during the the construction period of a self-constructed asset

Explanation:

"Determining the cost of constructing a new building is often more difficult. Usually this cost includes architect’s fees; building permits; payments to contractors; and the cost of digging the foundation. Also included are labor and materials to build the building; salaries of officers supervising the construction; and insurance, taxes, and interest during the construction period."

Reference: Porter, Debbie, and Tidewater Community College. “Principles of Accounting I.” Lumen, 2019,

7 0
3 years ago
In a recent year, BMW sold 217,044 of its 1 Series cars. Assume the company expected to sell 226,244 of these cars during the ye
True [87]

Answer:

The answers are:

+ Sales price variance: $65,113,200

+ Sales volume variance: $(239,200,000)

Explanation:

We have detailed calculations shown as below:

Sales price variance = ( Actual unit sales price - budgeted unit sales price) x actual unit sold = ( 26,300 - 26,000) x 217,044 = $65,113,200;

Sales volume variance = ( Actual unit sold - Budgeted unit sold) x budgeted unit sales price = (217,044 - 226,244) x 26,000 = $(239,200,000).

So, for BMW recent year, we have:

+ Sales price variance: $65,113,200;

+ Sales volume variance: $(239,200,000).

6 0
3 years ago
Read 2 more answers
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