All categories

3 years ago

Because costs and benefits are both subjective, a calculation of the value of a decision is always based on what?

Business

2 answers:

labwork [276]3 years ago

8 0

Answer:

personal opinion

Explanation:

shusha [124]3 years ago

5 0

Value of information (VOI or VoI) is the amount a decision maker would be willing to pay for information prior to making a decision.
Because costs and benefits are both subjective, a calculation of the value of a decision is always based on personal opinion.

You might be interested in

You are a freshman in college and are planning a trip to Europe when you graduate from college at the end of four years. You pla

Mashcka [7]

Answer:

$2,980.4

Explanation:

To find the answer, we use the future value of an investment formula:

FV = PV(1 + i)^n

Where:

FV = Future value (the result we are looking for
PV = Present value (the initial values that the question has given us)
i = interest rat
n = number of compounding periods

For the first $640:

FV = $640(1 + 0.0760)^1

FV = $688.6

For the $690

FV = $688.6 + $690 (1 + 0.0760)^1

FV = $1,431

For the second $690

FV = $1,431 + $690 (1 + 0.0760)^1

FV = $2,173.4

For the final $750

FV = $2,173.4 + $750 (1 + 0.0760)^1

FV = $2,980.4

So at the end of four years, you will have $2,980.4.

8 0

3 years ago

Activity-based costing uses one plantwide pool and numerous cost drivers departmental pools and a single cost driver. numerous c

kipiarov [429]

Answer:

numerous cost pools and numerous cost drivers

Explanation:

Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.

In Financial accounting, one of the most widely used activity-based costing technique is the time-driven activity-based costing.

Time-driven activity-based costing (TDABC) avails business owners the opportunity of reporting their costs on an ongoing basis (real time) which give details about the various cost of doing business, as well as the time spent on them respectively.

Cost pool is simply the amount of money spent by a firm on a particular activity.

Generally, an activity-based costing uses numerous cost pools such as manufacturing cost or customer services and numerous cost drivers such as direct labor hours worked, number of changes used in engineering department, etc.

6 0

3 years ago

A misconception is a mistaken idea or thought. True or False

yanalaym [24]

True............................

3 0

3 years ago

Read 2 more answers

Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $6

iVinArrow [24]

Answer:

1) Financial advantage = $15,100

2) X15 should be processed further because it would generate 15,100

Explanation:

A company should process a product further if the additional revenue from the split-off point is greater than than the further processing cost.

Also note that all cost incurred up to the split-off point are irrelevant to the decision to process further .

Sales revenue after further processing

(19×8,300) 157,700

Sales revenue at the split-off point

(16×8,300) 132,800

Additional sales revenue from further processing 24,900

Less further processing cost (9,800)

Financial advantage 15,100

Financial advantage = $15,100

X15 should be processed further because it would generate 15,100

7 0

3 years ago

Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts

andre [41]

Answer and Explanation:

The computation is shown below:

Amount Uncollectible is

= $128,500 × 6%

= $7,710

Now the bad debt is

= $7,710 - $905

= $7,105

The adjsuting entry would be

Bad Debt A/c Dr $7,105

To Allowance for Doubtful Debts $7,105

(being bad debt expense is recorded)

here bad debt expense is debited as it increased the expenses and credited the allowance as it decreased the assets. Also the expenses and assets contains normal debit balance

8 0

3 years ago