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3 years ago

PERT and CPM

Business

1 answer:

ValentinkaMS [17]3 years ago

5 0

Answer:

Answer is option a, i.e. have been combined to develop a procedure that uses the best of each.

Explanation:

In project management, PERT i.e. project evaluation and review technique is used as a statistical tool that is used to assess the overall work that is done to complete a certain project. In order to complete a particular task, there can be 'n' number of paths or ways. The best decision of selecting a pathway that is time-saving as well as cost-saving is to be found out. This chosen path is then referred to as 'Critical path.' Hence, PERT and CPM can be understood as two faces of a single coin, and have been combined to develop a procedure that uses the best of each.

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Riley Company promises to pay Janet Anderson or her estate $150,000 per year for the next 10 years, even if she leaves the compa

Jlenok [28]

Answer:

The Answer is explanatory so it is given as under:

Explanation:

<u>Part 1. At the start of the year:</u>

The part of the salary includes $150,000 per year for the next 10 years and this must be recorded as an deferred compensation liability. All we have to do is to calculate the present value of the annual salary payments.

Present Value = Annual Payment * Annuity factor

And for Annuity factor we will use 5% rate of interest.

Annuity Factor = (1 - (1-r)^n) / r

Here

r = 5%

n = 10 years

Which means

Annuity Factor = (1 - (1 + 5%)^10) / 5% = 7.722

Hence

Present value = $150,000 * 7.722 = $1,158,260

So the journal entry would be as under:

Dr Deferred Compensation expense $1,158,260

Cr Deferred Compensation Liability $1,158,260

At the first year end, the annual payment of $1,158,260 will be discounted back by using the following formula:

Discounted Back Amount = Annual Amount * (1- (1+r)^n)

Remember for the first year n is 10, for second n is 9 and so on.

Discounted Back Amount = 150,000 x (1 - 0.614) = $57,913

Dr Deferred Compensation Expense $57,913

Cr Deferred Compensation Liability $57,913

Part 3. And when the first payment of the salary is made, the journal entry would be:

Dr Deferred compensation Liability $ 150,000

Cr Cash Account $150,000

Likewise we will till the year 10 and will record the part 2 and part 3 until at the end of the year 10, the whole of the deferred tax liability is reduced to zero.

The life insurance policy payments can not be offset against the deferred compensation liability because it will be accounted for as a different transaction and hence must not be treated as Riley desires.

So the Cash surrender value will be treated as an asset and annual increase in this asset would be treated as an income.

5 0

3 years ago

All else the same, if a bank's liabilities are more sensitive to interest rate fluctuations than are its assets, then ________ i

Bad White [126]

Answer:

A) an increase; reduce

Explanation:

All else the same ,if a bank liabilities are more sensitive to interest rate fluctuations than are its assets, then an increase in interest rates will reduce bank profits.

A bank is said to be sensitive towards to interest rates means that the bank revalue its liabilities on the basis of the change in the interest rates. Thus if the interest rates increases it means the liabilities of the bank has increased on which the bank is liable to pay higher interest which will automatically reduce the bank profits as the interest payable by the bank is an expense for the bank.

6 0

3 years ago

Pie Corporation paid $319,500 to acquire 90 percent ownership of Slice Company on April 1, 20X2. At that date, the fair value of

Brums [2.3K]

Answer and Explanation:

As per situation the Journal entries with narrations is here below:-

As per requirement of a

1. Slice Co. investment Dr, $319,500

To Cash $319,500

(Being cash paid is recorded)

2. Slice Co. investment Dr, $27,000

To Income from Slice Co. $27,000

(Being investment is recorded)

3 Cash Dr, $13,500

To Slice Co. investment $13,500

(Being cash is recorded)

As per requirement b

1. Sales Dr, $90,000

To Total Expenses $80,000

To Dividends Declared $5,000

To Retained Earnings $5,000

(Being sales is recorded)

2. Common stock Dr, $160,000

Additional paid-in capital Dr, $40,000

Retained earnings Dr, $155,000

Income from Slice Co. Dr, $27,000

NCI in NI of Slice Co. Dr, $3,000

To Dividends declared $15,000

($1,500 + $13,500)

To Investment in Slice Co. $333,000

($319,500 + $27,000 - $135,00)

To NCI in NA of Slice Co. $37,000

(Being acquisition is recorded)

5 0

3 years ago

Every few months for the past six years, Camille has ordered between $1,000 and $1,250 worth of crickets from Khan's Crickets, d

FrozenT [24]

The result of this mistake on the order form is that Khan's Crickets should verify from Camille the actual order amount intended.

We may factor in the fact that the number of crickets will show the correct quantity that Camille requires, then Khan should supply only the quantity on the order form and request for a corrected or revised order form from Camille.

Thus, the result is that Khan's Crickets will still supply crickets with an invoice worth $1,000, not adhering to the mistaken total sum.

Related link for similar mistake on order form at brainly.com/question/17251413

3 0

2 years ago

Using the cut-and-try method for aggregate operations planning, we can back calculate beginning inventory if we knew the values

viva [34]

Answer:

A. 300

Explanation:

the difference in demand and the closing inventory

= 1000 - 900

= 100

And 20% of the demand (2000) = 200

the safety stock = 200 + 100

= 300

Therefore, The the beginning inventory is 300.

7 0

3 years ago