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.