Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7) A cost center responsibility report ________. A. typically focuses on the flexible budget variance B. includes depreciation expense C. is the same as a

7) A cost center responsibility report ________.

A. typically focuses on the flexible budget variance

B. includes depreciation expense

C. is the same as a performance report

D. shows all costs incurred by the department

8) Which of the following situations suggests the acceptance of an investment proposal?

A. The investment will have a residual value.

B. The present value of the net cash inflows exceeds the initial investment.

C. The IRR is lower than the hurdle rate.

D. The cash inflows are less than the initial investment.

9) Carlos Naturals manufactures bulk quantities of cleaning fluids. The company currently sells 600 containers a month at a sales price of $22 per unit. The addition of a new disinfectant will result in a sales price of $25 per unit for the improved product. It would cost a total of $3,800 per month to make the alteration. Operating income would ________.

A. increase by $3,800

B. increase by $2,000

C.decline by $2,000

D. decline by $13,200

10) Which of the following is a capital budgeting method used to screen potential investments?

A. return on assets

B. accounting rate of return

C. debt-to-equity ratio

D. acid test ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Database Audit And Protection

Authors: Gerardus Blokdyk

3rd Edition

0655407499, 978-0655407492

More Books

Students also viewed these Accounting questions

Question

What were your most important educational experiences?

Answered: 1 week ago

Question

Which personal relationships influenced you the most?

Answered: 1 week ago