Acct 434 Week 6 Customer Profitability Capital Budgeting

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ACCT 434 Week 6 Customer Profitability Capital Budgeting

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1.
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…...

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