Questions from Managerial Accounting

Q: Explain how a gain or loss on disposal is handled in a

Explain how a gain or loss on disposal is handled in a capital-budgeting analysis.

Q: Why may the net-present-value and internal-rate

Why may the net-present-value and internal-rate-of return methods yield different rankings for investments with different lives?

Q: Define the term profitability index. How is it used in ranking

Define the term profitability index. How is it used in ranking investment proposals?

Q: What is meant by the term payback period? How is this

What is meant by the term payback period? How is this criterion sometimes used in capital budgeting?

Q: How is an investment project’s accounting rate of return defined? Why

How is an investment project’s accounting rate of return defined? Why do the accounting rate of return and internal rate of return on a capital project generally differ?

Q: Discuss the pros and cons of the accounting rate of return as

Discuss the pros and cons of the accounting rate of return as an investment criterion.

Q: Instant Dinners, Inc. (IDI), is an established manufacturer

Instant Dinners, Inc. (IDI), is an established manufacturer of microwavable frozen foods. L eland Forrest is a member of the planning and analysis staff. Forrest has been asked by Bill Rolland, chief...

Q: The board of education for the Blue Ridge School District is considering

The board of education for the Blue Ridge School District is considering the acquisition of several minibuses for use in transporting students to school. Five of the school district’s bus routes are u...

Q: Refer to the data given in the preceding exercise.

Refer to the data given in the preceding exercise. Data in preceding exercise: Bay State Community College enrolls students in two departments, Liberal Arts and Sciences. The college also has two ser...

Q: Golden Gate Fashions, Inc. a high-fashion dress manufacturer

Golden Gate Fashions, Inc. a high-fashion dress manufacturer, is planning to market a new cocktail dress for the coming season. Golden Gate Fashions supplies retailers primarily on the west coast. Fo...