25 May uestion GB519: Measurement and Decisio

Posted at 18:13h in Essay Writing Services by Past Papers

uestion

GB519: Measurement and Decision Making unit 4 quiz

1.To make a special order decision, managers need critical information about all the following except: (Points : 2)

Relevant costs.
Prior period operating costs.
Any opportunity costs.
The strategic, competitive environment of the firm.

2.The opportunity cost of making a component part in a factory with excess capacity for which there is no alternative use is: (Points : 2)

The variable manufacturing cost of the component.
The total manufacturing cost of the component.
The total variable cost of the component.
The fixed manufacturing cost of the component.
Zero.

3.A truck, costing $25,000 and uninsured, was wrecked the very first day it was used. It can either be disposed of for $5,000 cash and be replaced with a similar truck costing $27,000, or rebuilt for $20,000 and be brand new as far as operating characteristics and looks are concerned. The best choice provides a net savings of: (Points : 2)

$2,000.
$5,000.
$7,000.
$12,000.

4.When the internal rate of return (IRR) method and the net present value (NPV) method do not yield the same recommendation for the same investment project, the technique normally selected is: (Points : 2)

IRR, because all reinvestment of funds occurs at the rate of the cost of capital and because it takes into consideration the relative size of the initial investment.
NPV, because it takes into consideration the relative size of the initial investment.
IRR, because all reinvestment of funds occurs at the discount rate that will make the NPV of the project equal to zero.
NPV, because all reinvestment of funds occurs at the discount rate that will make the NPV of the project equal to zero.

5.Which one of the following statements concerning capital budgeting is not true? (Points : 2)

A basic objective underlying capital budgeting is to select assets that will earn a satisfactory return.
Capital budgeting is the process of planning asset investments.
Capital budgeting is based on precise estimates of future events.
Capital budgeting involves estimating the revenues and costs of each proposed project, evaluating their merits, and choosing those worthy of investment.
Capital budgeting uses after-tax cash flows in the analysis of proposed investments.

6.Which one of the following methods assumes that all interim cash inflows generated by an investment earn a return equal to the internal rate of return (IRR) of the investment? (Points : 2)

Modified internal rate of return (MIRR).
Payback.
Net present value (NPV).
Present value index (PI).
Internal rate of return method (IRR).

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.

Do you need an answer to this or any other questions?

About Writedemy

We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.

How It Works

To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

Are there Discounts?

All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.

Hire a tutor today CLICK HERE to make your first order

Print page

uestion GB519: Measurement and Decisio