ACCT 434 Week 7 Quality Control Inventory Management
1. Question:( TCO 9) To guide cost allocation decisions, the benefitsreceived criterion Question 2. Question:( TCO 9) Which cost-allocation criterion is superior when making an economic decision? Question 3. Question:( TCO 9) The MOST likely reason for allocating all corporate costs to divisions include that Question 4. Question:( TCO 9) Identifying homogeneous cost pools Question 5. Question:( TCO 9) The Hassan Corporation has an electric mixer division and an electric lamp division. Of a $ 20,000,000 bond issuance, the electric mixer division used $ 14,000,000 and the electric lamp division used $ 6,000,000 for expansion. Interest costs on the bond totaled $ 1,500,000 for the year. What amount of interest costs should be allocated to the electric lamp division? Question 6. Question:( TCO 10) The capital budgeting method, which calculates the expected monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present using the required rate of return, is the Question 7. Question:( TCO 10) Assume your goal in life is to retire with $ 1 million. How much would you need to save at the end of each year if investment rates average 9 % and you have a 15-year work life? Question 8. Question:( TCO 10) The net-present-value method focuses on Question 9. Question:( TCO 10) In situations in which the required rate of return is not constant for each year of the project, it is advantageous to use Question 10. Question:( TCO 10) The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $ 950,000. The investment is expected to generate $ 350,000 in annual cash flows for a period of 4 years. The required rate of return is 14 %. The old machine can be sold for $ 50,000. The machine is expected to have zero value at the end of the 4-year period. What is the net present value of the investment? Would the company want to purchase the new machine? Income taxes are not considered. =========================================
ACCT 434 Week 7 Quality Control Inventory Management