When considering the sensitivity of estimates used to evaluate IT initiatives, which of the following are you likely to do?
A. Use multiple metrics to evaluate each IT initiative.
B. Test the impact of changes in assumptions on the various financial metrics.
C. Develop exact quantifications of costs and benefits.
D. Consider which groups in the organization will benefit.
Answer: B
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The Roger's Company incurred the following costs in the acquisition factory production equipment: Invoice price $2,675 Purchase discount lost 75 Freight-in 400 Installation 750 Cost of trial runs 150 What is the capitalizable cost of the equipment?
A) $4,050 B) $3,900 C) $3,825 D) $2,675
Country Homes is a store for people who collect country arts and crafts and use them to decorate their homes. Last year, its net sales totaled $120,500. The cost value of the items it sold was $72,300. Taxes for the year were $7,680. The only expenses that the operation had were (1) rent for $3000, (2) salaries to the owner and one part-time assistant for $27,000, (3) utilities at $1,200, and (4) advertising of $500. Calculate the gross margin percentage for Country Homes.
A. 60.2 percent B. 9.6 percent C. 40 percent D. 7.3 percent E. 26.3 percent
Everyday information about pertinent developments in the environment to an organization is gathered through the internal report system
Indicate whether the statement is true or false
The profit margin is the:
A) ratio of income from operations to sales B) ratio of income from operations to invested assets C) ratio of assets to liabilities D) ratio of sales to invested assets