Questions from Cost Accounting

Q: How can capital budgeting tools assist in evaluating a manager who is

How can capital budgeting tools assist in evaluating a manager who is responsible for retaining customers of a cellular telephone company?

Q: Distinguish the nominal rate of return from the real rate of return

Distinguish the nominal rate of return from the real rate of return.

Q: List and briefly describe each of the five stages in capital budgeting

List and briefly describe each of the five stages in capital budgeting.

Q: What is the essence of the discounted cash flow methods?

What is the essence of the discounted cash flow methods?

Q: “Relevant costs for pricing decisions are full costs of the product

“Relevant costs for pricing decisions are full costs of the product.” Do you agree? Explain.

Q: The Walliston Group (WG) provides tax advice to multinational firms

The Walliston Group (WG) provides tax advice to multinational firms. WG charges clients for (a) direct professional time (at an hourly rate) and (b) support services (at 30% of the direct profession...

Q: “Only quantitative outcomes are relevant in capital budgeting analyses.” Do

“Only quantitative outcomes are relevant in capital budgeting analyses.” Do you agree? Explain.

Q: What is the payback method? What are its main strengths and

What is the payback method? What are its main strengths and weaknesses?

Q: Describe the accrual accounting rate-of-return method. What

Describe the accrual accounting rate-of-return method. What are its main strengths and weaknesses?

Q: “The trouble with discounted cash flow methods is that they ignore

“The trouble with discounted cash flow methods is that they ignore depreciation.” Do you agree? Explain.