Answer: sensitivity analysis
Explanation:
From the information given in the question, we can infer that the type of DSS analysis that Tom is performing is the sensitivity analysis.
Sensitivity analysis simply refers to the quantitative risk assessment that deajs with how the alteration of a particular variable will have an effect on the model's output.
Here, Tom believing that he can increase revenue up by implementing a few different breakfast promotions like the free coffee or hash browns shows that he's using sensitivity analysis.
Answer:
Annual cash flows = $300,000 ($200,000 + $100,000)
Length = 10 years
Required rate of return = 12%
NPV = $695,066.91
IRR = 27.3%
Payback period = 1,000,000/300,000 = 3.33 years
Simple rate of return = $200,000/1,000,000 = 20%
Explanation:
Answer:
B. As a component of income from continuing operations, in the period of change and future periods if the change affects both.
Explanation:
Option A - The effect of a change in accounting principle cannot be reported in the disclosure after income from continuing operations.
Option B - It is the answer because the accounting estimates should be reported as a component of income from continuing operations. It changes the overall accounting reporting treatment as a change in estimates.
Option C - Accounting estimates cannot be reported as a correction of an error as it is a component of income from continuing operations.
Option D - It cannot be the answer because accounting estimates can help to change the prospective years financial statement not the restating of current year's financial statements of all prior periods.
Answer: Conformance to specifications.
Explanation:
Conformance to specifications is a standard set by a production company for their products, where each unit of product needs to reach at least the level of standard set before they can be put out for sale. Conformance to specifications is usually checked by the quality assurance/quality control manager of a company.
Answer:
D - Hold less money
Explanation:
Inflation is the persistent increase in the general prices of goods and services over a period of time.
During inflation period, nobody wants to hold more of cash because the value of money gets depreciated as inflation increases (prices of goods increase).
For example, shoe-leather costs increases when there is an increase in inflation and it makes more economic sense to purchase shoe-leather as it preserves the value of money.