Define the feasibility measures that should be considered during project analysis and give an example of each
Technical feasibility is an assessment as to whether the system can be developed under existing technology or if new technology is needed. An example might be a situation where a firm wants to completely automate the sales process. A question would be-Is technology available that allows sales to be made without humans?
Economic feasibility is an assessment as to the availability of funds to complete the project. A question would be-Is it cost feasible to purchase equipment to automate sales?
Legal feasibility identifies any conflicts with the proposed system and the company's ability to discharge its legal responsibilities. An example would be a firm that is proposing a new mail order sales processing system for selling wine.
Operational feasibility shows the degree of compatibility between the firm's existing procedures and personnel skills and the operational requirements of the new system. Do the firm have the right work force to operate the system? If not, can employees be trained? If not, can they be hired?
Schedule feasibility pertains to whether the firm can implement the project within an acceptable time frame. An example would be a new ticket sales system for a sports team. The system would need to be implemented prior to the start of the new season.
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Consider the budget information for Bert and Ernie Design firm: Professional labor $1,000,000 Administrative labor 200,000 Lease expense 50,000 Design equipment depreciation 25,000 Samples and books 10,000 Utilities 20,000 Professional hours 100,00 . hours Number of rooms redone 2,00 . rooms Bert and Ernie decide there are two cost pools, design support, which is assigned to jobs based on the
number of rooms redone, and facilities costs, which is assigned to jobs based on the number of professional labor hours. The design support cost pool includes design equipment depreciation and samples and books. The lease expense and utilities are considered facilities costs. What is the budgeted rate per cost driver for facilities costs? a. $17.50 b. $1.05 c. $.70 d. $37.50
Customers are ____________ to be involved in a service process than in a process related to goods.
a. Less likely b. More likely c. Neither less nor more likely d. There is no way to assess this likelihood
The optimal capital structure minimizes the weighted average of the cost of debt and the cost of equity.
Answer the following statement true (T) or false (F)
Simon Company has two foreign subsidiaries. One is located in France, the other in England. Simon has determined the U.S. dollar is the functional currency for the French subsidiary, while the British pound is the functional currency for the English subsidiary. Both subsidiaries maintain their books and records in their respective local currencies. What methods will Simon use to convert each of the subsidiary's financial statements into U.S. dollars? English Subsidiary'sFinancial StatementsFrench Subsidiary'sFinancial StatementsA)TranslationTranslationB)RemeasurementRemeasurementC)RemeasurementTranslationD)TranslationRemeasurement
A. Option A B. Option B C. Option C D. Option D