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allochka39001 [22]
3 years ago
8

What is a disadvantage of the payback method?

Business
1 answer:
HACTEHA [7]3 years ago
5 0

The statement " It eliminates the inflows of cash earned following the payback period and time value of money" is the disadvantage of the payback method

The payback period is the period thats tells the time period in which the initial investment that was made should be recovered.

It is to be measured in years normally.

For finding the disadvantage, we need to find out the following information related payback period

  1. It is easy to calculate
  2. The cash flows earned after the payback period should not be used
  3. There is no requirement to determine the present value factor for measuring the payback period.
  4. Also, it does not use for distinct cheap projects from lower ones

So this is the reason this method ignored the times value of money

Therefore, we can conclude that, the correct option is b.

Learn more about the payback method here: brainly.com/question/16255939

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Bretthauer Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of July. Prio
Elanso [62]

Answer:

b. Manufacturing overhead applied to Work in Process for the month was $66,000

Explanation:

In posting the journal entries for a manufacturing company, the total of the amount on the credit side of the Manufacturing Overhead account represents the amount applied to and to be posted to the debit side of the Work in Process to complete the double entries.

Therefore, the correct option form the question is b. Manufacturing overhead applied to Work in Process for the month was $66,000.

7 0
2 years ago
During 2021, its first year of operations, a company provides services on account of $257,000. By the end of 2021, cash collecti
Dmitrij [34]

Answer:

Debit Bad debt expense $15,120

Credit Allowance for doubtful debt $15,120

Being entries to record estimated bad debts

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.  

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.

Account receivables balance as at year end

=  $257,000 - $131,000

= $126,000

Allowance for doubtful debt = 12% * $126,000

= $15,120

4 0
3 years ago
_____ lets programmers create Web pages that will update asynchronously while the rest of the Web page continues to be displayed
Misha Larkins [42]

Answer:

AJAX

Explanation:

Ajax programming (Asynchronous JavaScript and XML)

Ajax is a technology that allows HTTP queries asynchronously against the server. Under this definition, which may not be too clear for some people with little experience in the web environment, we find one of the most common tools on sites, which have allowed web applications to evolve to be as complex as we know them today.

In other words, Ajax allows access to existing data on the server without reloading the page completely. These queries against the server are made through Javascript and the data is processed using this same language, allowing the content of the page to be updated exactly where necessary.

6 0
3 years ago
True or False: You may contribute as much of your earnings as you choose to your employer-sponsored retirement plan
goldenfox [79]
A.( true because of each year
7 0
2 years ago
Read 2 more answers
Current Attempt in Progress Restate the following income statement for a retailer in contribution format. Sales revenue ($100 pe
Komok [63]

Answer:

<u>Contribution Margin Income Statement for the year end MM DD, YY</u>

                                                                      $                $

Sales revenue ($100 per unit)                                    66,000

Less: Variable Cost

Less cost of goods sold ($56 per unit)   36,960

Commissions expense ($6 per unit)         3,960

Shipping expense ($3 per unit)               <u>  1,980  </u>

                                                                                   <u>  42,900 </u>

Contribution Margin                                                    23,100

Less: Fixed Cost

Salaries expense                                        7,900

Advertising expense                                <u>  5,800  </u>

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Net Income                                                                 <u>  9,400</u>

5 0
3 years ago
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