AB Division had the following information: Asset base in AB Division Net income in AB Division Weighted average cost of capital Target ROI Margin for AB Division P400,000 P50,000 12% 15% 20%

Q: explain the direct allocation method.

A: The objective of this question is to understand the concept of the direct allocation method in…

Q: Explain the differences between a PPO and an HMO.

A: The question is based on the concept of different types of health insurance policy and their…

Q: What constitutes a dicontinued operations.?

A: Definition:   Income statement: The financial statement which reports revenues and expenses from…

Q: In general terms, how does IFRS for SMEs differ from full IFRS?

A: International Financial Reporting Standards:   IFRS (International Financial Reporting Standards) is…

Q: What is an operating segment?

A: Operating segment: It is defined as providing information about the business actives with an…

Q: What is meant by Remainderman?

A: The remainderman is a beneficiary that receives the principal left in an estate or trust after a…

Q: What is the relevant range of CVP?

A: Introduction: Cost-Volume-Profit (CVP) analysis, also commonly referred to as break-even analysis,…

Q: What is multiple IRRs?

A: Multiple IRRs IRR is a discounting rate at which an amount of investment equals PV of the future CF.…

Q: What is GAAP and how does it work

A: The accounting is based on various principles that are defined by GAAP or IFRS.

Q: Define split-off point.

A: Contribution approach: The contribution approach calculates the net profit by calculating the…

Q: Define Double-entry system.

A: Double entry system: Double entry system is a way of accounting or bookkeeping which implies that…

Q: or working for NPV and EAA calculation?

A: EAA is calculated as shown below. EAA=NPV×r1-11+rnHere,Cost of capital/ WACC=rLife of project=n

Q: What are special allocations?

A: Introduction: Special allocation for a business is considered as distributing profits and losses…

Q: What is the DCF method?

A: DCF is a complex tool for valuation which approximates the value of any investment depending upon…

Q: What is the relevant range?

A: The concept of relevant range is used in the cost accounting. It tells under what level of…

Q: explain about functional and non functional requirements

A: The question is asking to explain the concepts of functional and non-functional requirements, which…

Q: How do you find full absorption cost

A: Absorption costing refers to the method of managerial accounting in order to capture all the costs…