More amount of working capital is needed when:

Q: The difference between APV approach, NPV approach and Weighted Average Cost of Capital approach to…

A: Capital budgeting is a technique to evaluate the profitability or value of the project by using…

Q: Discuss how contribution margin can be maximized when one factor limits productive capacity.

A: In this question, we are taking the example of a small medical. Factors that would most likely to…

Q: The lessor’s initial direct costs often are substantial. What are initial direct costs?

A: The costs which are associated directly with originating a lease and are essential to acquire the…

Q: What is the relationship between planning and working capital management?

A: Finance mangers do the planning of financial activities and resources in the organization by…

Q: When computing the Weighted Average Cost of Capital (WACC), what are the primary variables used?

A: The weighted average cost of capital (WACC), which includes common stock, preferred stock, bonds,…

Q: 17. What are costs that remain the same in total dollar amount as the activity base changes?

A: The costs that remain same in total dollar amount is  Both cost per unit and activity base are…

Q: Distinguish between the company cost of capital and project cost of capital?

A: Answer: Differences between project cost of capital and company’s cost of capital: Project cost of…

Q: Describe the basic approaches for determining an appropriate working capital.

A: Working capital is the sum of money that a business utilizes to pay for its ongoing expenses. In…

Q: what is pay back analysis in project management

A: Payback period is the time a project will take to payback the money spent on it.

Q: After all costs have been accounted for, how much money will be made to cover them

A: The Answer :

Q: 2) What is measured along the horizontal axis in a graph of the production possibility frontier?…

A: The Measured along the Horizontal Axis in a graph of the production possibility frontier is as…

Q: Distinguish between goal weights and historical weights in terms of how they are used to compute the…

A: Here Is The Answer:

Q: _______ of a project are those that will occur whether a company accepts or rejects a project.…

A: Sunk cost is the cost of project which was already incurred by the company before starting the…

Q: What is Working capital efficiency and provide an example of it.

A: We have to comment on working capital efficiency and provide some example.

Q: Working capital management is critical for a variety of reasons.

A: Working capital management: The term "working capital administration" refers to the management of…

Q: What is the most fundamental factor in engineering economy? a. Compound amount factor b.…

A: Engineering economics is referred to as the subset of economy, which used to be concerned along with…

Q: What is the Impact of Technology on Working Capital Management

A: Working capital: Working capital refers to the excess amount of current assets over its current…

Q: How to apply the concepts of working capital management? Show your framework and discuss.

A: Working capital management is crucial to a company's overall financial health and operational…

Q: Describe the significance of working capital management in your own words. What are the advantages…

A: The Answer:

Q: Relate the idea of cost of capital to the opportunity cost concept. Is the cost of capital the…

A: The total cost of financing current projects (or projects under consideration) will be the financial…

Q: Define zero working capital target

A: Companies always thrive to maintain the optimum working capital such that it’s business activity…

Q: What exactly is negative working capital?

A: Working capital is the difference between a bank's assets (cash, accounts receivable/unpaid customer…

Q: Evaluate the concep of working capital management ? give examples

A: Working capital management ensures that the company has sufficient funds for operating its…

Q: Working Capital is needed for which of the following purposes a. Purchase of raw materials and…

A: Working Capital:- It is also known as networking capital, It is a difference between current assets…

Q: Define Working capital turnover

A: Working capital represents the liquidity of a company as it shows the difference between the current…

Q: how to find net operating working capital

A: Working capital or net working capital is arrived by deducting Current liabilities from Current…

Q: Weighted average cost of capital (WACC) reflects the average cost of all capital components…

A: The Weighted Average Cost of Capital (WACC) represents a firm’s average after-tax cost of capital…

Q: What is the main determinant of the level of investment?

A: An investment is simply a financial instrument formed with the goal of allowing money to grow. One,…

Q: Cost Management is extremely important for running successful projects. With reference to this:…

A: Project Cost: It refers to the total funds that are required to complete a project.

Q: What do we call the cost of capital at which the two projects have the same NPV?

A: The term cost of capital refers to the cost that the company incurs in raising capital from…

Q: monetary working capital

A: Working capital is the capital that keeps revolving around the business. This is the capital that…

Q: Describe the Incremental Analysis for Cost-Only Projects?

A: The incremental cost is the additional cost incurred for producing an additional one unit of a…

Q: The weighted average cost of capital is used to determine whether or not a project should be done.…

A: Solution:- Weighted Average Cost of Capital means the minimum return which a firm should earn in…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.