8 Cost is the cash or cash-equivalent value sacrificed for gouds and services thut is expected to bring a current or future benefit to the organization.
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A: Capital budgeting : Capital Budgeting is the process of making long term Investment decision.
Q: 23. Which of the following statements concerning capital budgeting is FALSE? O A. A basic objective…
A: Capital budgeting is a process of evaluating major projects or investments of the business.
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A: “Hey, since there are multiple questions posted, we will answer only one question, as per our…
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A: Definition:
Q: 36, 37
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- Assume you are the department B manager for Marleys Manufacturing. Marleys operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only o department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial information to determine costs that may need further investigation. (Hint: It may be helpful to perform a vertical analysis.)A responsibility center structure that considers investments made by the operating segments by using a common cost of capital percentage is called_______. A. return on investment B. residual income C. a profit center D. a discretionary cost centerWhich of the following is NOT one of the definitions of "Cost" concept? Select one: a. Cost means economic sacrifice, measured in terms of standard monetary unit, incurred or potentially to be incurred, as a consequence of a business decision to achieve a specific objective b. Cost is the amount of expenditure (actual or notional) incurred or attributable to a given thing c. Cost refers only to the cash paid for purchasing an item. d. Cost is a measurement, in monetary terms, of the amount of resources used for the purpose of production of goods or rendering services
- PLEASE ANSWER ALL Write “True” if the statement is true and write “False” if the statement is false. The relevant range of activity is the activity level at which the company makes the highestamount profits. Fixed costs per unit decline as the activity level increase within the relevant range of activity. A period cost is defined as the cost incurred when asset is used up or sold for the purpose ofgenerating revenue. Opportunity costs could be defined as the revenue lost when one alternative is not taken infavor of another alternative.Match each of the statements to the correct stem. 1. In a make or buy decision, a. The selling price is a cash inflow 2. In a special order decision, b. The selling price is cashoutflow 3. In a process further decision, c. The cost of the joint product is not relevant.State whether each of the following statement is true or false and explain your answer. 1. The total value created by a firm is the difference between its product's price and costs.
- Differential costs represent – Group of answer choices the costs which is shown in the balance sheet but not expensed in the income statement until the sale of the products. The differences in costs among different departments of an organization. the amount of increase or decrease in costs from a particular course of action when compared to its alternatives the difference between controllable costs and non-controllable costs.____ 1. Industries that typically use process cost systems include chemicals, oil, metals, paper, and pharmaceuticals. ____ 2. The methods of evaluating capital investment proposals can be grouped into two general categories that can be referred to as (1) methods that ignore present value, and (2) present values methods. ____ 3. Variable costs are costs that remain constant in total dollar amount as the level of activity changes. ____ 4. As product costs are incurred in the manufacturing process, they are accounted for as assets and reported on the balance sheet as inventory. ____ 5. Since the costs of producing an intermediate product do not change regardless of whether the intermediate product is sold or processed further, these costs are not considered in deciding whether to further process a product.i.“Differential Costs” are considered as relevant, where as “sunk Cost ” is considered asirrelevant for decision making purposes. Explain ii. Why opportunity cost is measured and relate with the evaluation of alternative, can it bean opportunity loss? iii. Which one either spoiled goods or defective goods are less economical for the companyand why?
- The systematic examination of the relationships among selling prices, volume of sales and production, costs, and profits is termed a. cost-volume-profit analysis b. contribution margin analysis c. budgetary analysis d. gross profit analysis In a profit center, the manager has responsibility and authority for making decisions that affect a. assets b. investments c. long-term liabilities d. costsPease help these are true/false questions. ____ 1. Industries that typically use process cost systems include chemicals, oil, metals, paper, and pharmaceuticals. ____ 2. The methods of evaluating capital investment proposals can be grouped into two general categories that can be referred to as (1) methods that ignore present value, and (2) present values methods. ____ 3. Variable costs are costs that remain constant in total dollar amount as the level of activity changes. ____ 4. As product costs are incurred in the manufacturing process, they are accounted for as assets and reported on the balance sheet as inventory. ____ 5. Since the costs of producing an intermediate product do not change regardless of whether the intermediate product is sold or processed further, these costs are not considered in deciding whether to further process a product.The following sentences relate to achieving the financial goal of cost minimization. Which of the following statements is FALSE? a. Prioritizing which costs to incur relates to the operating decisions of the firm only.b. Savings is the end product of this financial goal.c. There is a need to determine cost.d. Controling costs involves addressing unfavorable cost variances.