For capital budgeting purposes, an investment is acceptable if:
a. the present value of the expected net cash flows is positive.
b. net present value is positive.
c. the intrinsic value is greater than the current market price.
d. all of the above.
ANSWER: D
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Benjamin Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Fixed Element per MonthVariable Element per Container RefurbishedRevenue $5,400Employee salaries and wages$58,300 $1,000Refurbishing materials $700Other expenses$31,200 When the company prepared its planning budget at the beginning of March, it assumed that 26 containers would have been refurbished. However, 23 containers were actually refurbished during March.The amount shown for total expenses in the planning budget for March would have been closest to:
A. $128,600 B. $133,700 C. $143,226 D. $126,700
Accurate Tax Returns budgets two direct labor hours for every tax return that it prepares, at a standard cost of $34 an hour
During the most recent year, 520 returns were completed with the labor cost totaling $18,000. The actual labor cost was $34.62 per hour during that period. The actual number of labor hours was 1,200. What is the direct labor cost variance? A) $320 F B) $40,800 U C) $744 U D) $40,800 F
All transactions involving the delivery of property from one person to another create a bailment
Indicate whether the statement is true or false
FastBreak Inc is dissatisfied with its ranking in Google Inc's search results. FastBreak files a suit against Google, seeking an injunction. Google argues that its search results are constitutionally protected speech. FastBreak's best argument against Google's position is that
a. the First Amendmentprotects humansagainst state censorship and protecting a computer's speech is not related to that purpose. b. the trillions of decisions made by computers each day do not all constitute protected speech. c. computerized algorithms, which generate computer language, do not constitute speech. d. search results constitute commercial speech, for which the First Amendment provides only limited protection.