The direct income capitalization model employs an infinite time horizon.
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What is time horizon?</u></h3>
- A time horizon, sometimes referred to as a planning horizon, is a set point in the future where specific activities will be assessed or taken to have concluded.
- Assigning such a defined horizon time is important in an accounting, financial, or risk management regime so that alternatives can be assessed for performance over the same time frame.
In the real world, a time horizon is physically impossible. Even though short term horizons like end of day, end of week, and end of month matter in accounting, these horizons are typically used for simple mark to market processes and summing up.
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Answer:
C). Compare actual controllable costs with flexible budget data.
Explanation:
The Cost center is very crucial to be determined by an organization as it indirectly bestows its profitability. It is usually calculated by comparing the actual cost generated by the department to the expectations as per the budgeted cost. Thus, the most constructive method to evaluate a cost center would be the 'comparison between the actual controllable costs and the flexible budget data' as it helps in assessing the actual expense incurred during the year and whether it is lesser or greater than the cost estimated in the budget. Hence, <u>option C</u> is the correct answer.
Answer: Option D
Explanation: Income statement refers to the financial statement under which the organisation shows its profit and loss for the year. It depicts the revenue received and the expenses incurred to earn that revenue.
Cash flow statement shows the inflow and outflow of cash whereas balance sheet shows the position of company at a particular point of time.
Hence from the above we can conclude that the correct option is D.
Answer: Is one of the way for a medium to monitoring its advertisement.
Explanation:
According to the given question, the good housekeeping magazine is one of an organization that always seal its products which is advertised the given products.
This organization also claim that of the products are found defective then the money get refunded based on the cost of the goods.
Based on the given scenario, the carefully screening is one of the process in which we easily monitoring its given advertisement of the firm. The "Seal of Approval" is refers to the impression given by the company for the purpose of monitor the product advertisement.
Therefore, The given answer is correct.
