The key steps followed by the managers in capital investment analysis include all of the following except
a. identification of capital investment needs
b. preliminary screening
c. formal requests for capital investments
d. sunk costs.
D
You might also like to view...
Although different audit firms take different approaches, performance materiality could be the same as overall materiality, or could be a percentage of overall materiality. Generally this range is which of the following?
a. 25% to 75% of overall materiality. b. 50% to 75% of overall materiality. c. 25% to 50% of overall materiality. d. 40% to 75% of overall materiality.
Because the efficiency benefits of large retailers can be passed on to consumers in the form of lower prices and because a competitive market should drive out uncompetitive firms, there is no persuasive rationale for claiming that it is unethical and unfair to force smaller stores out of businesses by temporarily pricing products under cost.
Answer the following statement true (T) or false (F)
Office Systems Corporation manufactures and sells various high-tech office automation products. Two divisions of Office Systems Corporation are the Computer Chip Division and the Computer Division. The Computer Chip Division manufactures one product, a "super chip," that can be used by both the Computer Division and other external customers. The following information is available on this month's
operations in the Computer Chip Division: Selling price per chip $50 Variable costs per chip $20 Fixed production costs $60,000 Fixed SG&A costs $90,000 Monthly capacity 10,000 chips External sales 6,000 chips Internal sales 0 chips Presently, the Computer Division purchases no chips from the Computer Chips Division, but instead pays $45 to an external supplier for the 4,000 chips it needs each month. Refer to Office Systems Corporation. Assume, for this question only, that the Computer Chip Division is selling all that it can produce to external buyers for $50 per unit. How would overall corporate profits be affected if it sells 4,000 units to the Computer Division at $45? (Assume that the Computer Division can purchase the super chip from an outside supplier for $45.) a. no effect b. $20,000 increase c. $20,000 decrease d. $90,000 increase
The straight-line depreciation method results in consistent depreciation expense.
Answer the following statement true (T) or false (F)