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3 years ago

When performing capital budgeting, __________ incurred by a project are irrelevant to future investment decisions.

Business

1 answer:

m_a_m_a [10]3 years ago

6 0

Question:

When performing capital budgeting, __________ incurred by a project are irrelevant to future investment decisions.

A) Opportunity costs

B) Depreciation

C) Sunk costs

D) Taxes

Answer:

The correct answer is C) Sunk Costs

Explanation:

Capital Budgeting is the art (most applicable to corporate persons) of planning expenditure that will be incurred in the future, especially on long term assets.

The reason you cannot factor Sunk Cost into a Capital Budget is because of its very nature.

Sunk Costs refer to monies for items that have already been expended and can never be recovered. If it can never be recovered and has already been incurred, it has no role to play in future considerations especially when the purpose of Capital Budgetting is considered.

The primary purpose of a Capital Budget is that it helps to further evaluate the inflow against the outflow of an investment to check whether or not the return is acceptable.

Every other option given in the question above are items that have futuristic qualities.

Cheers

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On January 1, 2016, Hess Co. purchased a patent for $1,904,000. The patent is being amortized over its remaining legal life of 1

levacccp [35]

Answer:

$1,305,600

Explanation:

Date of acquisition = Jan, 1 2016

Cost of purchase = $1,904,000

Initial useful life - 15 years

Initial amortization - 1904000/14

= $126,933

Date of review of amortization policy -2019

Accumulated amortization before 2019 -126,933.33*3=380800

Remaining useful years at December 2019 7

Amortization in 2019 =1904000-380800/7 =217,600

Carrying value at December 2019 = 1904000 - (380800 +217600) =1305600 Please note that change in amortization policy can only be applied progressively and not retrospectively

3 0

3 years ago

what was the role of Winnie madikizela-mandela in the struggle against apartheid in the 1950s to 1970s

dangina [55]

Winnie Mandela emerged as a leading opponent of apartheid during the latter part of her husband's imprisonment. Due to her political activities, she was regularly detained by the National Party government. ... While in exile in Brandfort, she, and those who attempted to assist her, were harassed by the apartheid police.

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3 years ago

Cola Inc. Soda Co. Fiscal Year Ended: 2015 2014 2013 2015 2014 2013 Net Sales $ 39,819 $ 35,690 $ 36,444 $ 62,438 $ 47,932 $ 47,

Colt1911 [192]

Answer:

2015 Cola Inc:

A/R TO 9.51

Days to collect 38.00

2014 Cola Inc:

Inventory TO 10.18

Days to collect 36

2015 Soda Co:

A/R TO 11.25

Days to collect 32

2014 Soda Co

A/RTurnover 11.28

Days to collect 32

Explanation:

2015

$\frac{COGS}{Average Inventory} = $Inventory Turnover$

where:

$$$Average Account Receivable =(Beginning A/R + Ending A/R)/2$

Sales 39,819

ending 4,531

beginnin 3,839

$$$Average A/R=4531 + 3839)/2$

Avg A/R 4185

$\frac{39,819}{4185} = $A/RTurnover$

A/R TO 9.514695341

$\frac{365}{A/R TO} = $Days to collect$

$\frac{365}{9.51469534050179} = $Days to collect$

Days on Inventory 38

2014:

$\frac{35690}{3505} = $A/RTurnover$

Inventory TO 10.18259629

$\frac{365}{10.1825962910128} = $Days to collect$

Days to collect 36

Soda Co:

2015

$\frac{62483}{5554.5} = $A/RTurnover$

A/R TO 11.24907732

$\frac{365}{11.2490773246917} = $Days to collect$

Days to collect 32

2014

$\frac{47932}{4250} = $A/RTurnover$

A/RTurnover 11.27811765

$\frac{365}{Inventory TO} = $Days on Inventory$

$\frac{365}{11.2781176470588} = $Days to collect$

Days to collect 32

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3 years ago

The Federal Reserve has the power to implement and manage which type of

Fed [463]

Answer:

B I think but I dont want to get this wrong for you so make sure with someone else to

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3 years ago

Shroden is a consumer goods manufacturer. It manufactures cookies, batteries, toothpaste, and soap. In the context of operations

Ray Of Light [21]

Answer:

inventory

Explanation:

Every item that is produced or purchased by the business in order to resell it and earn profit through it as a normal purpose of business, is considered as inventory.

In the given instance, Shroden manufactures consumer goods, like cookies, batteries, etc:

And since he targets to sell them and earn profit, all these manufactured products is the inventory of his business.

3 0

4 years ago