Given Information:
The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to $2 million. If it would cost $1 million to finish development and make the product, should you go ahead and do so? What is the most that you should pay to complete the development?
Answer:
Yes, because the total loss would then be $3 million rather than $5 million. The most you should pay to complete the development would be $2 million.
Explanation:
Every product or service that is marketed or is related against, and competitive with, a product or service created or produced by Fiserv or manufactured or distributed. Competitive Product or Service
In the end demand for the product declines due to the exhaustion of supply and economies and new technologies and shifts in the preferences of the customer.
The projected benefit generated by the new product must be offset by the profits from expenses in the project appraisal.
<span>increase the prime lending rate and decrease government spending</span>
Answer:
The correct answer is: supply side economics.
Explanation:
Supply-side economics is a macroeconomic theory which advocates lowering of taxes and decrease in regulation to boost economic growth. It is directly in contrast to demand-side economics.
This theory focuses on reducing taxes, decreasing regulations on producers and declining borrowing rates.
This theory states that economic growth can be stimulated by boosting investments through tax reduction.
Answer:
a. current tax rate or future tax rates, depending on when the temporary difference will reverse.
Explanation:
Deferred Tax is not payable to tax Authority it is only a book entry used by Accountants to match Income taxes payable in terms of Income Act and Income taxes expected to be presented to users in financial Statements.
Deferred taxes are based on current tax rate or future tax rates, depending on when the temporary difference will reverse.
