GEN COMBO LL MANAGERIAL ACCOUNTING; CONNECT ACCESS CARD
GEN COMBO LL MANAGERIAL ACCOUNTING; CONNECT ACCESS CARD
16th Edition
ISBN: 9781260088458
Author: Ray H Garrison
Publisher: McGraw-Hill Education
bartleby

Videos

Question
Book Icon
Chapter 13, Problem 1Q
To determine

Concept Introduction:

Capital planning screening choices is a choice taken to decide whether a proposed venture meets certain preset necessities, for example, those in a cost/advantage examination. For instance, will that new bit of machine spare the organization enough cash to pay for itself, and are these funds more noteworthy than the arrival the organization could have gotten by essentially putting the price tag into the bank and accepting enthusiasm over an indistinguishable period from the helpful existence of the machine? On the off chance that the appropriate response is no, it isn't to the organization's leeway to get it.

Capital planning inclination choices is a planning choice. The organization thinks about a few elective tasks that have met their screening criteria - whether a base rate of return or some other measure of convenience - and positions they arranged by attractive quality. The chiefs at that point select the speculation or strategy that best meets organization objectives.

Difference between capital budgeting screening decisions and capital budgeting preference decision.

Expert Solution & Answer
Check Mark

Explanation of Solution

Solution:

At the point when an independent venture is pondering a noteworthy interest in its own particular future development, it is said to settle on a capital planning choice. Capital planning includes the outpouring of huge measures of cash. The organization spends this cash with the expectation that the activities will bring about an incredible cost reserve funds or increment in future benefits. There are two sorts of capital planning choices:

i) Screening: It identifies whether a proposed venture passes a preset obstacle, and

ii) Preference: It identifies with choosing among a few contending strategies.

The contrast between these two capital planning, screening choices and inclination choices is that screening choices identify with whether a proposed venture passes a preset obstacle, while inclination choices identify with choosing among a few contending game-plans

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Chapter 13 Solutions

GEN COMBO LL MANAGERIAL ACCOUNTING; CONNECT ACCESS CARD

Knowledge Booster
Background pattern image
Accounting
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.
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Fixed Asset Replacement Decision 1235; Author: Accounting Instruction, Help, & How To;https://www.youtube.com/watch?v=LJRzn9K8Nwk;License: Standard Youtube License