Question : 41. A limitation of the internal rate of return method is: A. Failure : 1225723

 

41. A limitation of the internal rate of return method is: 

A. Failure to measure time value of money.

B. Failure to measure results as a percent.

C. Failure to consider the payback period.

D. Failure to reflect changes in risk levels over project life.

E. Failure to compare dissimilar projects.

42. An opportunity cost: 

A. Is an unavoidable cost.

B. Requires a current outlay of cash.

C. Results from past managerial decisions.

D. Is the lost benefit of choosing an alternative course of action.

E. Is irrelevant in decision making.

43. The potential benefits of one alternative that are lost by choosing another is known as a(n): 

A. Alternative cost.

B. Sunk cost.

C. Out-of-pocket cost.

D. Differential cost.

E. Opportunity cost.

44. A cost that requires a current and/or future outlay of cash, and is usually an incremental cost, is a(n): 

A. Out-of-pocket cost.

B. Sunk cost.

C. Opportunity cost.

D. Operating cost.

E. Uncontrollable cost.

45. A cost that cannot be avoided or changed because it arises from a past decision, and is irrelevant to future decisions, is called a(n): 

A. Uncontrollable cost.

B. Incremental cost.

C. Opportunity cost.

D. Out-of-pocket cost.

E. Sunk cost.

46. A company paid $200,000 ten years ago for a specialized machine that has no salvage value and is being depreciated at the rate of $10,000 per year. The company is considering using the machine in a new project that will have incremental revenues of $28,000 per year and annual cash expenses of $20,000. In analyzing the new project, the $10,000 depreciation on the machine is an example of a(n): 

A. Incremental cost.

B. Opportunity cost.

C. Variable cost.

D. Sunk cost.

E. Out-of-pocket cost.

47. An additional cost incurred only if a particular action is taken is a(n): 

A. Period cost.

B. Pocket cost.

C. Discount cost.

D. Incremental cost.

E. Sunk cost.

48. A company is considering a new project that will cost $19,000. This project would result in additional annual revenues of $6,000 for the next 5 years. The $19,000 cost is an example of a(n): 

A. Sunk cost.

B. Fixed cost.

C. Incremental cost.

D. Uncontrollable cost.

E. Opportunity cost.

49. Patrick Corporation inadvertently produced 10,000 defective personal radios. The radios cost $8 each to produce. A salvage company will purchase the defective units as they are for $3 each. Patrick’s production manager reports that the defects can be corrected for $5 per unit, enabling them to be sold at their regular market price of $12.50. Patrick should: 

A. Sell the radios for $3 per unit.

B. Correct the defects and sell the radios at the regular price.

C. Sell the radios as they are because repairing them will cause their total cost to exceed their selling price.

D. Sell 5,000 radios to the salvage company and repair the remainder.

E. Throw the radios away.

50. Product A requires 5 machine hours per unit to be produced, Product B requires only 3 machine hours per unit, and the company’s productive capacity is limited to 240,000 machine hours. Product A sells for $16 per unit and has variable costs of $6 per unit. Product B sells for $12 per unit and has variable costs of $5 per unit. Assuming the company can sell as many units of either product as it produces, the company should: 

A. Produce only Product A.

B. Produce only Product B.

C. Produce equal amounts of A and B.

D. Produce A and B in the ratio of 62.5% A to 37.5% B.

E. Produce A and B in the ratio of 40% A and 60% B.

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more