Why is there a need to segregate key functions in the expenditure cycle?

Q: Explain the Service Projects versus Revenue Projects?

A: The project is the collaborative effort initiated to achieve a certain objective within a certain…

Q: Why is partitioning an internal rate of return important?

A: Introduction: There are two cash flow components which can form the portioning of internal rate of…

Q: Explain briefly what the EOQ model is andhow it can be used to help establish an optimalinventory…

A: Economic Order Quantity (EOQ) Model It is a method of inventory costing that aims to identify the…

Q: What is the profession’s recommendation in regard to the use of the term “surplus”? Explain.

A: The professionals has recommended that use of term surplus should be discontinued in balance sheet…

Q: What is the process of allocating the cost of natural resources to expense as they are used?

A: Natural resources usually include oil reserves, coal deposits, and mineral deposits. The natural…

Q: Why is it important to distinguish flexible and committed resources?

A: The economic elements that allow one to perform activities are referred to as the resources.…

Q: Identify activities that consume resources.

A: Activity-based costing also known as ABC is a costing method that assigns indirect cost to…

Q: in general, what is the required accounting treatment for research and development costs?

A: The research and development costs are the cost incurred to research for some new ideas and cost…

Q: Understand the concept of relevant revenues and costs. What makes a revenue or cost relevant?…

A: solution concept relevant revenue                 relevant revenue means the revenue which has the…

Q: Which of the following costs is relevant in decisionmaking? committed costs accounting costs cash…

A: Following is the answer to the given question

Q: Describe the decisions about expenditure?

A: Expenditure:   It is the money spent by the organization to purchase or increase the value of their…

Q: What is the nature of research and development costs?

A:

Q: What is an opportunity cost and why should it be included when making decisions?

A: Opportunity costs is the costs of next best alternative foregone by accepting current alternative.…

Q: revenue and the expenditure cycle can be viewed as having two key parts

A: Revenue cycle involves sale of goods and expenditure cycle involves purchase of goods.

Q: Discuss, using practical example how revenue expenditure should not be capitalized?

A: SOLUTION- Thus, a revenue expenditure which increases the utility or productive capacity of an…

Q: Explain of two key levers- revenue and expenditure.

A: For any business to sustain and grow, there are five main levers that drives it. These levers…

Q: How do fixed asset systems differ from purchases systems?

A: Definition: Purchase system: The identification and procurement of the inventory needs for the…

Q: Why is the contribution margin an important concept forincremental decision making?

A:

Q: What is the definition of “actuarial present value”?

A: Accumulated Benefit Obligation: It is an inexact rate of a company's pension plan liability towards…

Q: What is Discretionary Spending;

A: The items which are used for entertainment and for recreation which the consumers generally purchase…

Q: What is meant by the term responsibility accounting?

A: Introduction: responsibility accounting is the process of the controlling the cost by giving the…

Q: Distinguish between Service Projects and Revenue Projects?

A: Service Projects: Service projects are those projects which are carried out for the welfare of…

Q: How can we use the PW criterion to compare the alternatives to minimize expenditures?

A: The full form of PW is present worth. Present worth is known as the present value of the investment…

Q: What properties should transfer-pricing systems have?

A:

Q: How much is the total accountability?

A: Financial accountability means that the performance of a certain function shall be borne by a person…

Q: How are research and development expenses treated?

A: Research and development(R&D) expenses: These  are the expenses which an entity incurs in…

Q: Explain Deferred Revenue? How it is different from Deferred Expenditures? Give an example?

A: Explain the meaning of deferred revenue and provide example:Deferred revenues:Collection of cash in…

Q: Is advertising a program expense?

A: Advertising is treated as expense when it is incurred by the entity or organization for making the…

Q: Staff training on new system  is a capital or revenue expenditure. Why???

A: The expenditure can be categorized as revenue expenditure or capital expenditure.

Q: What is Physical Systems of Revenue Cycle?

A: Revenue cycle           Revenue cycle are divided into two              a. physical phase…

Q: Identify and distinguish between the physical and financial components of the expenditure cycle.

A: The whole expenditure cycle divided into monetary and non-monetary transaction .the financial…

Q: Name the major subsystems of the expenditure cycle.

A: A transaction process system helps a business to process all the transactions are the required…

Q: What type of basis is it called when we report only the amounts actually collected and/or spent?

A: There are two methods of accounting. One is cash basis and other is accrual basis.

Q: Name the major subsystems of the revenue cycle.

A: Revenue cycle refers to tracking a revenue transaction from its beginning to end i.e. from receiving…

Q: Classify Revenue or capital expenditure?

A: Introduction: Revenue Expenditure: Its a Recurring expenditure. Expenditure spent with in 12 months…

Q: Which categories are non value added activities?

A: Non value added activities are those activities that does not actually add value to the product or…

Q: What are the strengths and weaknesses of infrastructure as an asset class?

A: Infrastructure as an asset is an investment in services, installations, and facilities. There are…

Q: What is expenditure? explain types of expenditure?

A: Payments or liabilities incurred in exchange for goods or services are referred to as expenditures.…

Q: What Is  the term Surcharging?

A: A surcharge could be a fee applied to a master-card transaction for the acceptance of the…