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(irIOI if)! rfilvl.) I if / 7 UP}, fmdrwrzawmuuwmmfiood "wcwuflrw Hmflk/ %U:/anprd- H meCwSfl "STAG/fin Mum imnwmqm; "Hm... Uni)?" maid mafia?! 0. up mike/fi HE muumzmm "sugar/dm "nauruwmumuu "nr/flu I tv 444 .I f dJirtJ .zV/I 'Vzv ,. 'II , ' l. . ,v Fra 'i '::0 . r u . UL r/I/ J . , 7 wii f/IflkL tr/IKAIJIyr/ ,. Jin". ; , . A ' , 7 an flqul. n'n : : .. 31 1 . , ' i, ' fld'gr/fl , rfo/Jfi gr; . dlfila/lw with . uIr/J M, gil. 4 . CS 4, fu/ILuC aIf/ n ,. "122422, :, 22 Sri," II+III1 ; "la-St fry 525 ,/,/.r:.7,1,;.,:J ;.:::L g 72. .Zz, af: /CZ " // . 17, Liz" Ist/az? fitz/ap 121 534ng fi ." ,4,.:./, an; //,/,/ / allifil riff 75.' 50 un :.,7 it al/ / u at, I z/ / /,r/NUVA u ('212I1x vu urn. v , i mph rn 12-21)-l'rul. Nuurl Alumni ' rr v v " yu v ' l)() INUI " RI I l, Uh HMS lnXAi'fl-llsc Scantrnn/Answer Sheet (illuplrl' .'.' I. An "ppm llllllh nut: .l. lx un mmnmlnlulc uni, H. Helium". .u cmu'nl Hulln)' nl'cmh. ('. lit-sulu hum [LN inunzngcrinl decisions lb). Is the lost bcnctil ol'cliooaing an alternative course of action. l'. is iuclcvum in decision making. -. An ddtlllflnldl cost that Is Incurred only If at particular action is taken is a(n): A. l'criod cost B. Pocket cost " C. Discount cost D. Incremental cost .. E. Sunk cost. 2' at" . . xi; 3 A cost that requires a current and/or future outlay of cash, and is usually an incremental cost, is ' a n): 3 'f A. Out-of-pocket cost 5 B. Sunk cost 'o'y' C. Opportunity cost ' " D. Operating cost E. Uncontrollable cost anged because it arises from a past decision, and is irrelevant ' i 4. A cost that cannot be avoided or eh I , to future decisions, is called a(n): ; A. Uncontrollable cost ' B. Incremental cost '1 C. Opportunity cost D. Out-of-pocket cost E. Sunk cost project that will cost $19,000 This project would result in for the next five years. The $l9,000 cost is an example of am): 5. A company is considering a new additional annual revenues of S6,000 A. Sunk cost B. Fixed cost C. Incremental cost D. Uncontrollable cost E. Opportunity costwu x xu Hit xu, an Si" M "01110N'1Hlk 'o" D "bg A- "nrl hqvnr' "it! Ml llc lift-lltll$' l / ' ed "4 "in": (outta; It-oe't Un," {fin l . " L'l'hii 1') l'lur "anil Xln'urd [XACH wl Me Srnntron/An-.wcr Sheet rnnuhvhunl ln, 3 Huln'nntrw(hvr. ('urrrntly, un '; EJSJNHI Hun," '; 'tvl,',: It. am xl UKU'N) s. Q if, 1; it) lu}, LUC" llllllil fx ,'.f.; ; llp} product lucio it LI ;%4' ll:" [arras u:tl truro-oo, mm ;: zutvynuiutor tor SHAME/IL it mould: e current l.tctur'/ U'uL'lllCitfl iu le , . tlun SHIUJW'L "fLVIH' 4' the co .t ul'dm-ct rnrrtenul plu . direct labor of munutlieturim', in lex. than 4 Is"! 'l " l'm'l"u lk brute the total incremental costa ol munutucturxng are greater tliun SlU'LUU'). "' "'W ""5 l""'l"l lk'k'uune totzil fixed and variable manufacturing costs are greater than $l()(),()()0 l.. Mule the product because ll'ictury overhead is u sunk cost. 7. "'Mch of the following should be classified as production costs? A. Direct materials: and selling costs. li. Direct labor and administrative costs. ('. Manutixcturing overhead and selling and administrative costs. It). Direct nmterials. direct labor, and selling and administrative costs. If. Direct materials. direct labor, and manufacturing overhead. Chapter 24 u 8. Capital hudgcting decisions usually involve analysis of: M A. (lush outllows only. ! Il. Short-term investments only. , f C. Long-term investments only. I), Investments with certain outcomes only. If. Operating revenues. 9. Which ofthe following is an objective of capital budgeting? A, To eliminut ' all risk, It. To discount all t'utur and past cash flows. 3. To urn u sutistirctory return on investment. I), 'I'o reverse past decisions. i, To reduce the number ol'invcstmcnl activities. Ht. 'l'lu: process of resulting future cash flows in terms of their present values is called: A, l)'i:;countiru.g. It, ('upilul huduetinu. ( 3, I'uylmck period. l), Rink uncertainty. Ic', Accountirng rute ot'return.NOVA ACC 212 Ex r i ' 'pr"f szri Ahmed " The "me value of monev c IL Means that a dollar today. B. Means that a doll C- Mcans that n doll D Means that "'l'in [5 Does not involv ' onccpt: Is worth less than or tomorrow is worth mor ' ar today is wor L ie 18 money." at dollar tomorrow. than a dollar! t i oday. th more than a dollar tomorrow. c the concept of compound interest. 12. A minimum acce A. Intcmal rate of return 8. Average rate ofrctuni C. Hurdle rate ofretum. . D. Maximum rate of relum E. Payback rate of return. ptable ra te of return for an Investment decision is called the: 13 W ' . N ltuch methods of evaluating a capital investment project ignore the time value of money? 0 present value and accounting rate of return. B Accounting rate of return and internal rate of return. C. Internal rate of return and payback period. D. Payback period and accounting rate of return. E. Net present value and payback period. 14. A company is considering purchasing a machine for $21,000 The machine will generate an after-tax net income of $2,000 per year. Annual depreciation expense would be $1,500 VVh'at is "'e payback period for the new machine? A. 4ycars. B. 6ycars. C. lO.5 years. ; 5 D, 14 years. I E. 42 years. 15. A company is considering purchasing a machine for $21,000 The machine will generate an > if after-tax net income of $2,000 per year. Annual depreciation expense would be $1,500 What is the l' / approximate accounting rate of return? i A. 19% B. 33% C. l7% I' D. 10% / E. 25% ( 16. The rate that yields a net present value of zero for an investment is the: A. Internal rate of return. B. Accounting rate of return. C. Net present value rate of retum. D. Zero rate of return. E. Payback rate of return.NOVA ACC 212 [EXAM 3 (Chapters 22-24)-l'r0f Nuuri Ahmed DO NO I "'RI'I'E ON THIS EXAM-Use Scantron/Answer Sheet 17." ' ' Hu n are two basic ste "presents those A- (1) Com x Plltc the I'V . * ' . B. (1) Compute the PV get" for the pI'OJCCt and (2) compare it to the hurdle rate. C- (1) Identify the disco am for me Project and (2) identify the discount rate. um rate and (2) Compare the IRR to the hurdle rate. the hurdle rate and (2) accept or reject the projCCt rate and (2) c ompute the l'V factor for the prOjCCL ps in calculating the internal rate of return. Which of the following, two steps? PROBLEM #1 (CHAPTER 22). Kee ' Onth the f ' ed two shared indirect expenses The amounts ofthc . . our departments mcurr indirect expenses and th b ate them follow. (1) Use this mfonnatlon to allocate each of the two ' 6 ages used to auoc indirect expenses across the four departments using the tables r sheet. . provided below. Respond on the answe Indirect Ex muse Su mn'ision Utilities and Insurance "" ' Sc uare feet occu ied Departmental data f or the company's recent reporting period follow. De mrtment Purclmsine Human Resources Almiut'ncttu'in ' 7 ' Assent bl t' J mm ESSAY QUESTION #1 (CHAPTER 23). Good management accounting indicates that projects be evaluated using relevant data. ln choosing among alternatives what factors (considerations) are relevant? Respond on the answer sheet

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