Questions from Cost Accounting

Q: A company should accept for investment all positive NPV investment alternatives when

A company should accept for investment all positive NPV investment alternatives when which of the following conditions is true? a. The company has extremely limited resources for capital investment. b...

Q: Which of the following items describes a weakness of the internal rate

Which of the following items describes a weakness of the internal rate-of-return method? a. The internal rate of return is difficult to calculate and requires a financial calculator or spreadsheet too...

Q: Which of the following statements is true if the NPV of a

Which of the following statements is true if the NPV of a project is –$4,000 (negative $4,000) and the required rate of return is 5 percent? a. The project’s IRR is less than 5 percent. b. The require...

Q: The following information pertains to the January 2, year 2 transaction

The following information pertains to the January 2, year 2 transaction replacing a print machine for Hidden Creek Enterprises, Inc. Net book value – old print machine…………. $20,000 Total cost of new...

Q: Nick’s Enterprises has purchased a new machine tool that will allow the

Nick’s Enterprises has purchased a new machine tool that will allow the company to improve the efficiency of its operations. On an annual basis, the machine will produce 20,000 units with an expected...

Q: During the current year, a strategic business unit (SBU)

During the current year, a strategic business unit (SBU) within Roke Inc. saw costs increase by $2 million, revenues increase by $4 million, and assets decrease by $1 million. SBUs are set up by Roke...

Q: Assuming an increase in price levels over time, which of the

Assuming an increase in price levels over time, which of the following asset valuations will produce the highest return on assets? a. Net book value b. Gross book value c. Replacement cost d. Deprecia...

Q: If ROI is used to evaluate a manager’s performance for a relatively

If ROI is used to evaluate a manager’s performance for a relatively new division, which of the following measures for assets (or investment) will increase ROI? a. Gross book value used instead of net...

Q: Rowan Company produces pipes for concert quality organs. Each job is

Rowan Company produces pipes for concert quality organs. Each job is unique. In April 2016, it completed all outstanding orders, and then, in May 2016, it worked on only two jobs, M1 and M2: Direct m...

Q: The Long Haul Trucking Company is developing metrics for its drivers.

The Long Haul Trucking Company is developing metrics for its drivers. The company computes variable costs of each load based upon miles driven and allocates fixed costs based upon time consumed. Load...