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zimovet [89]
3 years ago
10

In evaluating independent projects, no incremental analysis is necessary between projects. Each project is evaluated separately

from others, and more than one project can be selected. Therefore, the only comparison is with the do-nothing alternative for each project.
True or False?
Business
1 answer:
fenix001 [56]3 years ago
6 0

TRUE

<u>Explanation:</u>

The correct answer is true as the independent projects are selected based on the net present worth and the rate of return and do nothing alternative. In the independent projects, there is no need for the incremental B/C analysis. Simple B/C ratio will do it. If the B/C > 1, benefits outweigh the costs and the project is selected provided that there is no budget limitation. Thus, the given statement is absolutely the true one.

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You expect to receive $20,000 at graduation one year from now. you plan on investing it at 6 percent until you have $100,000. ho
Free_Kalibri [48]
The answer will be $120,000
4 0
3 years ago
Explain the differences in operating incomes obtained in requirements 1 and 2. The difference in operating income under absorpti
erik [133]

Answer:

Differences in Operating Incomes Under Absorption Costing and Variable Costing:

The 2020 operating income under absorption costing is greater than the operating income under variable costing because

the ending inventory has carried over some fixed manufacturing costs, making the cost of goods sold less than under variable costing.

Explanation:

The differences in the operating incomes obtained under variable costing and absorption costing are due to the fixed manufacturing costs that are included in the ending inventory ​and carried forward to the next accounting period while the ending inventory under variable costing does not include any fixed manufacturing costs.  Absorption costing is based on full costing system but, variable costing  does not include the full costs.

6 0
3 years ago
Partridge Co. can further process Product J to produce Product D. Product J is currently selling for $21 per pound and costs $15
kondaur [170]

Answer:

Differential cost= $9.25

Differential revenue= $16

Explanation:

As the name suggest, differential cost is the difference between the costs of two alternative options. Now in this question, Patridge Co. has two products, PJ AND PD, <em>one of which (i.e PD) can be produced by further processing an already produced product (i.e PJ). But for the production of product D, Patridge Co. would have to incur additional cost of $9.25 per pound. </em>

The formula for differential cost is as follows;

Differential cost= total cost of alternative J - total cost of alternative D

Differential cost= $15.75 - ($15.75+$9.25)

Differential cost= $9.25

Differential revenue is similarly the difference between the revenue generated by two alternatives. In this question product J sells for $21 whereas product D sells for $37 so the differential revenue would be as follows:

Differential revenue = revenue of alternative D - revenue of alternative J

Differential revenue= $37 - $21

Differential revenue= $16

7 0
3 years ago
Cash equivalents are highly liquid investments that are bothA : money market funds and have a maturity date of one year or less.
Ber [7]

Answer:

D : readily convertible and very close to their maturity dates.

Explanation:

Cash equivalents are current liquid assets and comprise cash in hand,  cash at the bank, and short term investment whose maturity is in three months or less. A company's total value of cash and cash equivalents is recorded at the top line of the balance sheet as a current asset. They are the most liquid asset of a company.

For an asset to be classified as a cash equivalent, it must have the ability to convert to cash easily. Its value should be relatively stable and be determined with ease. Cash equivalents indicate the financial strengths of a business and its ability to offset the current liabilities.

5 0
3 years ago
Thiago has spent a long time working in various commercial establishments owned by some of his close relatives. He now wishes to
9966 [12]

Answer:

The correct answer is Sole Proprietorship.

Explanation:

A sole proprietor is the simplest form of commercial structure. Anyone can be a sole proprietor and there is no legal basis for this business form. The term sole proprietor simply refers to someone who is engaged in some type of business and who is responsible for the debts of that business. You can run a sole proprietor under your own name, or under a "do business as" (DBA) name, such as Manny's Sandwiches. The DBA name is just a business name and does not create a legal entity separate from the sole owner.

A sole proprietor remains a very popular commercial form because it is simple, easy to create and has minimal costs. All that is needed is to register your name and your DBA is applicable, and pay local licenses if necessary. Once this is done, you will be ready for business. The disadvantage of a sole proprietor is that the sole proprietor is responsible for all commercial debts, and there is no legal shield against lawsuits. If a sole proprietor loses a lawsuit, he or she is responsible for paying the sentence with their own money, which could put the savings or even your home at risk.

4 0
3 years ago
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