Answered: In Benefit/cost ratio analysis, if the…

In Benefit/cost ratio analysis, if the salvage value is used to recover the first cost, it is being considered as: Select one: a. negative cost b. benefit c. disbenefit d. cost

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter11: Cash Flow Estimation And Risk Analysis

Section11.2: Analysis Of An Expansion Project

Problem 3ST

See similar textbooks

Related questions

Q: replacement cost historical cost net realizable value present value

A: Hey there the question is assumed to be as assets are valued under.

Q: An asset's book value or carrying value is its: Multiple Choice O accumulated depreciation. cost…

A: The book value or carrying value of the machine is the value that carries on the balance sheet of…

Q: Which of the following is not included in the calculation of the lifecycle cost of a product?…

A: Cost of disposal refers to the additional expense incurred as a result of the disposal of an asset,…

Q: Which of the following concepts is violated when measuring inventories at the lower of cost and net…

A: Solution: As per historical cost concept, in accounting value of an assets is recorded at original…

Q: Residual value is: A. Also called residual value. B. Also called scrap value. C. An estimate of the…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: The total cost of an asset less its accumulated depreciation is called: Multiple Choice Historical…

A: Book value = Total cost of assets - Accumulated Depreciation

Q: Describe cost depletion and percentage depletion. Whyis the percentage depletion method permitted?

A: Depletion: Depletion is defined as the reduction in the value of natural resources due to its…

Q: An opportunity cost may be described as: a. a foregone benefit. b. a historical cost. c. a…

A: Opportunity cost means the sacrifice of an individual when he chooses one option over another.

Q: d. Estimated selling price less estimated cost to complete c. Expected selling price less expected…

A: Since you have asked multiple questions, we will solve the first question for you . If you want any…

Q: The term opportunity cost applies to a resource that a company ________. A) is thinking about…

A: Opportunity cost is the next best alternative benefit which is forgone.

Q: Opportunity costs; a. Are treated as period costs under variable costing b. Have already been…

A: Introduction:- Opportunity cost means as follows under:-

Q: A sunk cost can be described as which of the following? A historical cost Cannot be…

A: Sunk Cost: The sunk cost is the historical cost that already has been incurred previously, which is…

Q: Which of the following would be considered a sunk cost? a. purchase price of new equipment b.…

A: Sunk Costs: Sunk costs are those costs incurred in the past and it cannot be changed unless if any…

Q: Which valuation method is dependent on a calculation of terminal value? a) DCF b) Comparable…

A: Option C is correct.

Q: tirst cost for E M&O for A salvage value Proc First

A: Given: Two alternatives A and B is: 0 = -53,000+ 21,000(P/A, ∆i*B-A,5) + 80000(P/F, ∆i*B-A,5)

Q: After recognition, exploration and evaluation assets are accounted for under the cost model…

A: There are two methods are prescribed by IAS 16 Property, Plant and Equipment for acccount for the…

Q: Salvage value is always deducted from the total capitalizable cost to get the depreciable cost. What…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: The term that refers to costs incurred in the past that are not relevant to a decision is: Oa…

A: Sunk cost is the cost which is incurred in tha past and is not relevant for the decision making.…

Q: In making a short-term special decision, which of the following is MOST important? a. Use a…

A: Solution Concept The decision that is to be taken differs from one another on the basis of the time…

Q: Which of the following best describes the higher of an asset's net selling price and its value in…

A: Asset's net selling price is the amount obtainable from the sale of assets less any disposal cost.…

Q: Decommissioning and restoration costs should be initially capitalized at: historical cost…

A: All reasonable expenses and charges incurred by a business or firm to repair the factory or…

Q: Depreciated replacement cost is equal to the * a. Sound Value b. Net appreciation c.…

A: The depreciation expense is charged on fixed asset as reduced value of fixed asset with the passage…

Q: What costs must gross profit cover for Superior Construction? The gross profit must cover these…

A: Gross Profit: Gross profit is the amount of money a company earns after deducting all of the…

Q: When outcome of a construction contract is estimated reliably, contract revenue and contract costs…

A: Solution: As per IAS 11, "when the outcome of a construction contract can be estimated reliably,…

Q: Salvage value is: O Also called residual value O Also called scrap value O An estimate of the…

A: Solution: salvage value is the value of an asset remaining after it has been fully depreciated. It…

Q: difference between expected results and actual experience results to a remeasurement of the net…

A: The answer is stated below:

Q: An asset's cost minus accumulated depreciation is its Multiple Choice OO O market salvage residual…

A: Fixed Assets - Fixed assets are the resources of the Company. Depreciated at the end of every year.…

Q: Under IFRS, how are investment properties subsequently measured? a) The cost…

A: International Accounting Standard 40 on Investment states that the investment property should be…

Q: the best technique to use in valuing a tangible loss is: A) A replacement cost B) Market Values C)…

A: Tangible loss means the direct loss of money or property such as lost wages etc.

Q: When contribution is positive but equal to fixed cost: a. There is loss less than fixed cost b.…

A: Contribution is the amount received after the variable cost or direct costs are deducted from Sales,…

Q: Why put the normal loss costing into the true loss account for abnormal loss?

A: Cost accounting: Cost accounting is a form of managerial accounting that aims to capture a company's…

Q: What do you understand by Capital cost Allowances (CCA)? What is accelerated CCA? Also, can you…

A: Capital cost allowance A capital cost allowance is a form of depreciation of a capital asset used…

Q: elevant for decision making purposes. Explain ii. Why opportunity cost is measured and relate with…

A: SOLUTION-1 DIFFERENTIAL COSTS OR RELEVANT COST -THEY ARE THE COST THAT IS AFFECTED BY THE DECISION…

Q: The core difference between the rational entity impairment model (IFRS) and the cost recovery…

A: International Financial Reporting Standards (IFRS): IFRS are a set of international accounting…

Q: Which among the following does not hold good for Historical cost accounting? a. Historical cost is…

A: Historical costs or the original cost is the cost of the asset used to record in the balance sheet…

Q: Represent the cost that will be affected by the decision being considered. Margin of Safety…

A: The relevant and irrelevant costs are important in decision making.

Q: The difference between the purchase cost of an asset and its value at the end of the life is known…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Whether any of the following sentences about abnormal spoiling is true? a. It is considered to be…

A: Spoilage refers to materials or components that have been damaged, which are beyond the capacity of…

Q: If a newly acquired asset is ‘held for sale’, the asset or disposal group will be measured at: A.…

A: Held for sale assets are those assets that are acquired for the purpose of sale in short period of…

Q: is used to spread the cost of an asset across its useful life rather than recognizing it all at…

A: Let's understand the basics, Asset is an item of property owned by a person or company, regarded as…

Q: Present value of decommissioning and restoration costs are capitalized as PPE and with a…

A: Decommissioning cost is the cost which will be incurred when the asset useful life is over or when…

Q: Depreciation is an example of a mixed cost. Select one: O a. FALSE O b. TRUE

A: Mixed Cost is a cost that has a certain percentage of fixed as well as variable costs. Basically, a…

Q: Which of these statements is true? a. The matching concept requires that we distinguish between…

A: The matching principle is an accounting principle that states that the expenses and revenue of a…

Q: Assets are usually valued at? a.Historical Cost b. Residual Value c. Net Realizable Value d.…

A: Assets are the resources that are owned by the organizations. Assets can be current or non-current.

Q: . In determining the amount of a provision, a company using IFRS should generally measure: a.…

A: An economic obligation created and maintained to cover the future liability is termed as provisions.…

Q: In Benefit/cost ratio analysis, if the salvage value is used to recover the first cost, it is being…

A: The benefit to cost ratio is the ratio of the total present value of the benefit to the present…

Question

In Benefit/cost ratio analysis, if the salvage value is used to recover the first cost, it is being considered as:

Select one:

a. negative cost

b. benefit

c. disbenefit

d. cost

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The difference between cost of the asset and residual value is known as a . Depletion b . Salvage value c . Total cost of the asset . d . Depreciable cost
Depreciated replacement cost is equal to the * a. Sound Value b. Net appreciation c. Depreciable amount d. Carrying amount
Residual value is: A. Also called residual value.B. Also called scrap value.C. An estimate of the asset's value at the end of its benefit period.D. A factor relevant to determining depreciation.E. All of these.
The three factors in cost allocation of a depreciable asset are service life, allocation base, and allocation method. Select one: O True O False
Which of the following payback methods considers the salvage value in its basic computations? a. Traditional payback b. Bailout payback c. Present value payback d. Discounted payback
The cost recovery deduction is taken after
Which of the following aspects of a cost-benefit study would have the greatest uncertainty as to its precise value?a. the tangible costsb. the intangible costsc. the tangible benefitsd. the intangible benefitse. none of the above because they are equally precise
A cost that has been incurred in the past, cannot be recouped, and is not relevant to future decisions is termed a a. period cost b. replacement cost c. sunk cost d. differential cost
A) What is residual value? Support your answer with an example ( word count 100) B) In practise, would you expect the depreciation expense for a non-current asset to be overestimated or underestimated? Explain why this is the case.
In a decision analysis situation, which one of the following costs is generally not relevant to the decision?A. Differential cost.B. Avoidable cost.C. Incremental cost.D. Historical cost.
“The unit cost of normal spoilage is the same as the unit cost of abnormal spoilage.”Do you agree? Explain.
A sunk cost can be described as which of the following? A historical cost Cannot be changed regardless of future actions taken All of the items on the list describe a sunk cost. Always irrelevant