Discuss the three common Valuation Approaches, their applications, and give an example of Valuation Method that can be used. DISCUSS NOT LESS THAN 10 SENTENCES EACH. 1. MARKET APPROACH 2. INCOME APPROACH 3. COST APPROACH
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Discuss the three common Valuation Approaches, their applications, and give an example of Valuation Method that can be used.
DISCUSS NOT LESS THAN 10 SENTENCES EACH.
1. MARKET APPROACH
2. INCOME APPROACH
3. COST APPROACH
Step by step
Solved in 4 steps
- What is the Economic Value Added (EVA) method? Provide a definition, state a formula, and define all the formula terms.Discuss the limitations of cost volume profit analysis for planning and decision making. Nb: please do answer this question in three paragraphs.Choose the best answer for each of the following multiple-choice questions.1. Cost-volume-profit analysis includes some simplifying assumptions. Which of thefollowing is not one of these assumptions?a. Cost and revenues are predictable.b. Cost and revenues are linear over the relevant range.c. Changes in beginning and ending inventory levels are insignificant in amount.d. Sales mix changes are irrelevant. 2. The term relevant range, as used in cost accounting, means the rangea. over which costs may fluctuateb. over which cost relationships are validc. of probable productiond. over which production has occurred in the past 10 years3. How would the following be used in calculating the number of units that must besold to earn a targeted operating income? Price per unit Targeted operating income Denominator Numerator Numerator Numerator Not used Denominator Numerator Denominator 4. Information concerning Korian Corporation’s product is as follows: Sales $300,000 Variable…
- Which method results in a more realistic amount for income because it matches the most current costs against revenue? a.FIFO b.Weighted average cost c.Specific identification d.LIFOA quantitative analysis enables a decision maker to put a “price” on the sum total of the qualitative characteristics in a decision situation. Explain this statement, and give an example.Explain and discuss your understanding about the full cost-pricing with 3 example of its possible application
- Kindly just let me know following formulas are correct or not? If the given formulas are not correct, then share with me correct formulas. Moreover, what is the difference between between formulas of Net Proceeds and Net Price? 1. Net Proceeds (NP) = Price (Flotation Cost)But if flotation rate is given instead of flotation cost, then Net Proceeds = Price (1 - Flotation Rate) 2. Net Price (Pn) = Issue Price - Flotation CostBut if flotation rate is given instead of flotation cost, then Net Proceeds = Issue Price - (1 - Flotation Rate)1. What are decisions where relevant cost analysis might be used effectively, along with a description of each type of decision. MUST INCLUDE examples in your description. ANSWER THIS IN 4 paragraphs. 2. A description of non-financial factors that might also need to be considered in making a decision regarding alternative courses of action. MUST INCLUDE examples in your description. ANSWER THIS IN 4 paragraphs.Explain the process of Rate-of-Return Calculation with Excel?
- Describe three limitations of the economic, profitmaximizing model of pricing.Matching Following are a number of key terms and concepts introduced in thechapter, along with a list of corresponding definitions. Match the appropriate letter for the key term or concept to each definition provided (items 1–12). Note thatnot all key terms and concepts will be used. Answers are provided at the end of thischapter.a. Cost–volume–profit analysisb. Cost formulac. Contribution margind. Contribution margin formatincome statemente. Linearity assumptionf. Contribution margin ratiog. Operating leverageh. Sales mixi. Break-even pointj. High–low techniquek. Managerial accountingl. Management processm. Variable costn. Fixed costo. Relevant rangep. Mixed (semivariable) costq. Cost behavior pattern____ 1. The proportion of total sales represented by various products or categoriesof products.____ 2. The difference between revenues and variable costs.____ 3. The concept that operating income changes proportionately more than revenues for any given change in revenues.____ 4. The…Prepare a statement showing the pricing of issues based oni) LIFO methodii) Simple Average method
