Analyze the potential disadvantages of the LCNRV method

Q: disadvantages of double declinig method

A: Double declining balance method is a method which is used to record depreciation on assets. Under…

Q: What is the critical path in the PERT method for network analysis?a. shortest path through the…

A: Critical Path: The critical path can be defined as the order of network activities involved in a…

Q: Why are CMOs overcollateralized?

A: CMO is the abbreviation used for collateralized mortgage obligation. It uses collaterals which are…

Q: Explain breakeven analysis.

A:

Q: What is the advantages and disadvantages of turnkey systems?

A: Introduction; A turnkey system is when the company develops, builds, and tests a manufacturing…

Q: What are the differences between MIRR method and IRR method?

A: The question is related to MIRR and IRR.

Q: Describe the shortcomings of the direct write-off method.

A: Direct write-off method: This method does not make allowance or estimation for uncollectible…

Q: Explain why NPV is the best criterion and how it overcomes problems inherent in the other methods.

A: The "value derived from the use of money over time as a consequence of investment and reinvestment"…

Q: Explain Anti-dilutive Security

A: Explanation to Securities Securities are referred to as the tradeable financial instruments which…

Q: What are the advantages of the direct write-off method? And Explain Please.

A: Direct write-off method is an effective way for a company’s business to recognize bad debt. Bad debt…

Q: Discuss some of the techniques available to reduce risk exposures.

A: Risk exposure is the estimated potential loss from ongoing or upcoming business operations. The…

Q: What are the advantages of the scattergraph method over the high-low method? Thehigh-low method over…

A: Introduction: Cost accounting is beneficial since it can demonstrate where a corporation spends…

Q: Are these good advantages and disadvantages about RRSP’s? What can I include and remove?

A: RRSP or registered retirement savings plan is a retirement savings plan for employees and self…

Q: What are some disadvantages of the APT?

A: APT is the abbreviation used for the arbitrage pricing theory. A theory or a model for asset pricing…

Q: What are some advantages of the Direct Write-Off method? What are some disadvantages of the Direct…

A: Direct Write Off Method: According to Direct Write off method, Bad Debt Expense is recognized once…

Q: Why is the NPV preferred over the IRR?

A: Net Present Value is a method of finding the profitability of a project by discounting future cash…

Q: What are the two shortcomings of the direct write-off method?

A:

Q: What is the criticism for using SMB and HML as risk factors?

A: The Fama and French Three-Factor Model (or Fama French Model for short) is an asset pricing model…

Q: How efficient is an High-low method technique?

A: Using high low method, different types of costs can be separated.

Q: Why is it more accurate to describe the subject matter as CVP analysis rather than as breakeven…

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: Which of the following is FALSE regarding advantages and disadvantages of the SML or CAPM?

A: The following statements are true: The model relies on the past to predict the future, which is not…

Q: MCMC and autocorrelation related to each other? If related, then what are the disadvantages…

A: GIVEN     MCMC and autocorrelation related to each other? If related, then what are the…

Q: How can you partically alleviate the various drawbacks of IRR?

A: Internal rate of return (IRR) is one of the capital budgeting techniques which is used to measure…

Q: advantages and disadvantages of the scattergram method as compared to the high-low method?

A: Solution High-low method takes high level activity and low level activity and measure the total cost…

Q: Why do we enter PV and FV as a negative when calculating TVM problems?

A: The term time value of money (TVM) states that the money losses its value over time. It means that a…

Q: What is the purpose of using the high-low method?

A: High-low method: In the high-low method, the semi variable-cost approximation is calculated by using…

Q: Differentiate between sensitivity analysis and scenario analysis.What advantage does scenario…

A: Differentiate between sensitivity analysis and scenario analysis: Scenario analysis involves…

Q: Explain the limitations of CAPM.

A: A mathematical model that describes the link between a security's expected return and risk is…

Q: Identify and explain one major disadvantage of incorporating.

A: Incorporating is a legal and systematic method for the formation of a separate business entity for…

Q: Explain three common approaches of system cutover. Also describe their advantages and disadvantages.

A: System cutover:   System cutover is defined as the conversion of data from old systems to the new…

Q: Discuss some of the techniques available to reduce risk exposure.

A: Risk exposure means possible losses which can be occur in future due to specific projects or…

Q: What is the major disadvantage of the high-low method?

A: High-low method: High-low method is a method of calculating the variable cost and the fixed cost of…

Q: What exactly are the advantages and disadvantages of turnkey systems?

A: Here are the advantages and disadvantages of turnkey systems:

Q: What is the iceberg effect? How can CASE tools help to minimize this phenomenon?

A: The Iceberg Principle or Iceberg Theory is a hypothesis that proposes that we can't see or recognize…

Q: Identify some potential problems with the CAPM.

A: The CAPM is a model that depicts the connection between the expected return and risk of putting…

Q: Explain risk aversion

A: Introduction: Risk can be characterized in terms of the uncertainty of future consequences resulting…

Q: How is VaR used to limit risk?

A: Value at Risk (VaR) a statistical tool which measures and quantifies financial risk a firm or…

Q: What are the advantage  of the scattergraph method over the high-low method? The high-low method…

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: Explain Variation on the Preferred IRR and IRR Lookback?

A: The internal rate of return (IRR) is the measure used in the financial analysis of an investment…

Q: Explain how NPV varies with risks. Show your argument using formulate for cases with different…

A: NPV or Net present value is the difference between the present value of cash inflows and cash…

Q: What are some limitations of using the direct write-off method?

A: In order to increase sales generally business enterprises sales the goods on a credit basis. When…

Q: Two potential pitfalls encountered in the design of performance indicators and measurement systems

A: Transfer price is the price quoted between the departments or companies that are related to each…

Q: How is breakeven analysis different from CVP analysis?

A: Breakeven analysis: It helps to analyze the break-even level of company that is, the level of…