Student Answer : Fixed salaries that will not be incurred if the part is outsourced . Payroll tax ( unemployment insurance cost ), because of outsourcing . Material-handling costs that can be eliminated if the part is outsourced . Special machinery for the part that has no resale value . Current direct material costs for the part . UNIT 4 QUIZ
Question 7 . Question : Which one of the following is an advantage of the book
( accounting ) rate of return method for analyzing capital investment proposals ? Student Answer : It is not affected by different accounting methods . It is precise and objective . Data for calculating the return are typically readily available . The method explicitly adjusts for the time value of money .
Student Answer : Fixed salaries that will not be incurred if the part is outsourced . Payroll tax ( unemployment insurance cost ), because of outsourcing . Material-handling costs that can be eliminated if the part is outsourced . Special machinery for the part that has no resale value . Current direct material costs for the part . UNIT 4 QUIZ
Question 7 . Question : Which one of the following is an advantage of the book
( accounting ) rate of return method for analyzing capital investment proposals ? Student Answer : It is not affected by different accounting methods . It is precise and objective . Data for calculating the return are typically readily available . The method explicitly adjusts for the time value of money .