Should the company use its overall WACC as thehurdle rate for each of its divisions?

Q: What role does the Cost Accounting Standards Board play when companies contract with the U.S.…

A: Cost Accounting Standards:   The cost accounting standards are the standards set by a board which is…

Q: Compare current performance of firms to its past performance is called cross-sectional. Select one:…

A: The financial statements of the business are analyzed using various financial ratios.

Q: Explain the following: a. Regional Operating Headquarter b. Branch Profit Remittance Tax

A: The corporation may have multiple branches and some of them may be located in other countries. The…

Q: Segment reporting deals with in-detail segment-wise financial reporting in the financial statements…

A: Follow the below regulations to find out what are the segments that need to be reported as per US…

Q: Using ranking method which of the four projects should be first priority and last priority of the…

A: Under ranking method, we rank our investment in decreasing order on the basis of IRR and NPV and…

Q: hich among the following is an example of qualitative data? a. Opinion poll b. Payroll data c.…

A: Qualitative data means the data which shows the character or feature of the data but does not show…

Q: What three factors would influence your evaluation as to whether a company’s current ratio is good…

A: Current ratio: Current ratio is one of the liquidity ratios, which measures the capacity of the…

Q: The net income before tax that the company would disclose on an absorption-costing income statement…

A: Absorption Costing Statement...       Sales revenue (37000*15)  (A)   555000 Less:Production…

Q: How might a company obtain a price index in order toapply dollar-value LIFO?

A:

Q: The residual income approach to measuring divisional performance measurement is closely related to…

A: Residual income approach refers to the net income measurement that the investment earns above the…

Q: How would a balanced scorecard for a company differ from that of its division scorecard? Do you…

A: The objectives of the parent company which is into both consumer products and in pharmaceutical…

Q: "Most countries require some form of absorption costing for external reports."  Please explain the…

A: Absorption costing is that method of costing in which total cost of manufacturing the product will…

Q: Provide an Market Performance Ratio analysis based on P/E, ROE and D/E.

A: P/E ratio = Share Price/Earnings per share ROE = Net Income/Average shareholder's equity D/E ratio =…

Q: products. Required: i. Prepare contribution format segmented income statements first showing the…

A: Segmental contribution margin income statement shows all sales revenues and expenses of all the…

Q: What would be the transfer price if Division X uses variable product cost plus markup? (round-off to…

A: Transfer pricing methodology is that process, by which prices are determined for transfer of product…

Q: The internal rate of return for Company A is close to

A: IRR is a discount rate that makes the net present value (NPV) of all cash flows equal to zero in a…

Q: National Company's wor ratio is closest to:

A: Current ratio: Current ratio express the relationship between current assets and current…

Q: What is the concentration ratio for this industry?

A: Answer: 48.5%

Q: What is the Annual Equivalence Analysis?

A: The criteria for annual equivalent analysis provides a basis for computing the value of an…

Q: Under Strategic analysis, a component measuring the change in cost assigned to the input price in…

A: Strategic analysis means analysis of business and strategy of business that whether it provides…

Q: When calculating a company’s WACC, should book value, market value, or targetweights be used?…

A: A company often raises money from various sources such that it has to provide a return in the form…

Q: What problem might arise when comparing firms’ fixed assetsturnover ratios?

A: Fixed assets turnover ratio is a ratio that is calculated by dividing the company's net sales by net…

Q: Describe the specific process required by the unit cost comparison for the use of annual worth…

A: A unit cost comparison is required for the use of annual worth analysis because companies often…

Q: ced quantity and realized price in a duopoly with firms A and B that is characteriz

A: Given a demand function P= 140-Q where Q= Q1+ Q2 MC=$ 20

Q: the dollar amount of sales needed to achieve a target operating income is computed by

A: Target operating income is the desired income which the business wants to earn by selling products…

Q: income: (Loss ) At the division level before the ad ) At the investment level. ) At the division…

A: In this question, we have to compute ROI for each division by dividing operating income by operating…

Q: How can we establish economic equivalence by selecting the base period?

A: Answer: There is economic equivalence between cash flows which have the same economic influence and…

Q: Determine the gross profit per unit for Division B based on the following transfer pricing method:…

A: Here in this question, we are required to calculate gross profit per unit for division B under cost…

Q: How should an entity perform the 10% test when each of its operating segments reports different…

A: Operating segment: An entity who has its control over revenues, gains and expenses, discrete…

Q: In order to assess a company’s ability to fulfi ll its long-term obligations, an analyst wouldmost…

A: Solvency: Solvency is the capability of a company to pay the long-term liabilities which are due.…

Q: 19 - Which of the following is related to the operations outside the main field of activity of the…

A: Other incomes  is related to the operations outside the main field of activity of the enterprise.

Q: Macro analysis of industry earning multiple?what are the steps?

A: Industry earnings multiple which is also known as earnings multiplier.

Q: Which one of the following is NOT a correct definition of Gross Domestic Product (GDP)? (a) GDP is…

A: GDP: Gross domestic product is the total monetary or market value of all the finished goods and…

Q: The decision by firms of the quantity of output to supply is based on O the price of inputs O the…

A: Please see the next step for the answer

Q: Write down pay objective of two companies?

A: Wage and pay administration's major goal is to create and maintain an equal wage and compensation…

Q: List and describe the components of Gross Domestic Product on the demand side. Be sure to account…

A: Gross Domestic Product: In a particular period of time, the gross domestic product (GDP) quantifies…

Q: hat was the division’s R

A: In this question, we have to compute the ROI for the year.

Q: How can we apply Annual-Worth Analysis for the calculation of Unit-Profit or Unit-Cost Calculation?

A: Annual worth analysis is an analysis of value of an investment on an annual basis. It measures the…

Q: Based on the information provided, the price/earnings multiple for National Co. is closest to

A: Expected EPS = EPS1 = P 5.70 Expected dividend = D1 = P 2.70 Growth rate (g) = 2.75% r = 8.35%

Q: Using the following data, what would the transfer price per unit if Division A purchased Component X…

A: As per market based tranfer pricing, purchasing division will pay the market price at which it can…

Q: 2. Calculate the effect on the Molding Division's net income if it accepts the $22 transfer price.…

A: The cost accounting is that branch of accounting which helps in ascertaining the cost of…