Answer:
1. Relevant costs are also known as unavoidable costs - False.
Relevant costs are in fact, avoidable cost that only emerge in specific business decisions.
2. Incremental costs are also known as differential costs - False
Incremental costs are costs that are incurred when an additional unit of output is produced. Differential costs ocurr when a particular product is made instead of another.
3. An out-of-pocket cost requires a current and/or future outlay of cash. - True
An out-of-pocket cost or expense is a direct payment of money, in other words, an outlay of cash.
4. An opportunity cost is the potential benefit that is lost by taking a specific action when two or more alternative choices are available - True
An opportunity cost can also be defined as what is given up to obtain something.
5. A sunk cost will change with a future course of action. - False
Sunk costs are costs incurred in the past, that cannot be recovered, or modified.
Answer: $40,121.29
Explanation:
Using Excel, you are finding the payment which is denoted PMT
The rate is:
= 10%/ 2
= 5% per semi annual period
The Nper or number of periods is:
= 10 * 2
= 20 semi annual periods
Present value of PV is $500,000
Future value is 0 because that is the balance after the payments are done.
Formula will look like:
=PMT(5%,20,-500000,0,0)
Payment will be:
= $40,121.29
Answer:
Explanation: see attachment below
Answer:
The debit to Cash Short & Over would be = $ 5
Explanation:
Given data:
initial imprest balance = $ 230
current cash = $ 15
miscellaneous petty cash tickets = $ 3
specific petty cash tickets = $ 207
The debit to Cash Short & Over would be calculated as:
= Initial imprest balance - ( current cash + miscellaneous petty cash tickets + specific petty cash tickets)
or
= $ 230 - $ 15 - $ 3 - $ 207
or
The debit to Cash Short & Over would be = $ 5
Answer:
10.4%
Explanation:
The computation of the expected return of the combined new portfolio is shown below:
= (Expected return of the current portfolio × weightage of current portfolio) + (expected return of the new project × weightage of new portfolio)
= (10% × 60%) + (11% × 40%)
= 6% + 4.4%
= 10.4%
The weighatge of current portfolio is come from
= 100% - 40%
= 60%