Devry ACCT434 Week 6 Customer Profitability Capital Budgeting

 .5pt;margin-right:0cm;margin-bottom:7.5pt;margin-left: 0cm;background:white”=””> ACCT 434 Week 6 Customer
Profitability Capital Budgeting
Question :
(TCO 9) To guide cost allocation decisions,the benefits-received
criterion
2.
Question :
(TCO 9) A challenge to using cost-benefit criteria for allocating
costs isthat
3.
Question :
(TCO 9) The MOST likely reason for NOT allocating corporate costs
todivisions include that
4.
Question :
(TCO 9)Identifying homogeneous cost pools
5.
Question :
(TCO 9) The Hassan Corporation has an electric mixer division and
an electric lamp division. Of a $20,000,000 bond issuance, the electric mixer
division used $14,000,000 and the electric lamp division used $6,000,000 for
expansion. Interest costs on the bond totaled $1,500,000 for the year. What
amount of interest costs should be allocated to the electric lamp division?
6.
Question :
(TCO 10) All of the following are methods that aid management in
analyzingthe expected results of capital budgeting decisions EXCEPT the
7.
Question :
(TCO 10) Assume your goal in life is to retire with $1.5 million.
Howmuch would you need to save at the end of each year if interest ratesaverage
5% and you have a 25-year work life?
8.
Question :
(TCO 10) Thedefinition of an annuity is
9.
Question :
(TCO 10) A “what-if” technique that examines how a result will
change ifthe original predicted data are not achieved or if an underlying
assumptionchanges is called
10.
Question :
(TCO 10) Shirt Company wants to purchase a new cutting machine for
itssewing plant. The investment is expected to generate annual cash inflowsof
$300,000. The required rate of return is 12% and the current machine isexpected
to last for four years. What is the maximum dollar amount ShirtCompany would be
willing to spend for the machine, assuming its life is alsofour years? Income
taxes are not considered.

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