Answer:
1.0
Explanation:
Benefit-cost ratio BCR can be expressed in monetary or qualitative terms. It presents the relationship between the relative costs and benefits of a proposed project.
If a project has a BCR greater than 1.0, the project is expected to be attractiveto a firm and its investors.
If a project's BCR is less than 1.0, the project's costs outweigh the benefits, and it should not be considered because it is unattractive.
Answer:
E. The corporate valuation model discounts free cash flows by the required return on equity.
Answer: An unfavorable variance can be used to detect a drop in estimated income early, and then solutions to the challenge can be identified.
Explanation:
An unfavorable variance is the difference between a company's projected expectation and the actual outcome of a financial activity of the company, where the actual outcome is less favorable than the projected expectation.
The information from an unfavorable variance can help alert a company to a negative outcome early, and the company's leadership can then find ways of solving the cause of the negative outcome.
Answer:
Total cost= $350,400
Explanation:
Giving the following information:
For Gundy Company, units to be produced are 5,280 in quarter 1 and 6,400 in quarter 2. It takes 2.0 hours to make a finished unit, and the expected hourly wage rate is $15 per hour.
Quarter 1:
Direct labor cost= 5,280*2= 10,560 hours
Quarter 2:
Direct labor cost= 6,400*2= 12,800 hours
Total cost= (10,560 + 12,800)*15= $350,400
