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: How can engineers make capital-expenditure choices that are based on forecasting success?

A: As a result of this forecasting performance, engineers make capital-expenditure decisions will be…

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: 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: How can the working-capital requirements significantly reduce a project's profitability or rate of…

A: More risky investments would bring about more returns. In this manner, an organization with high…

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: It is good to compute first the additional benefits that a project can give and the additional cost…

A: Meaning of the given options:: a) Law of supply and demand- The law of demand states that when price…

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: 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: What is the impact of changing transportation costs on incremental analysis?

A: 2. Impact on Pricing and Revenue:-Product Pricing: Fluctuations in transportation costs can affect…

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 total productive efficiency

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: How can we determine the Incremental Analysis for Cost-Only Projects?a

A: Answer: In capital budgeting, incremental analysis is one of the most common decision making methods…

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: 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: The cost of capital represents a. the capital outlay required in a project. b. the initial…

A: The Cost of Capital is a representative of cost of the current total capital financing of the…

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…

Q: Discuss two drawbacks of utilizing the weighted average cost of capital to make investment choices…

A: This question explains the disadvantages to using the weighted average cost of capital to allocate…

Q: can you explain the working capital  need to manage for long term benefit of the organisation?

A: The time period within which the organization is able to convert its current assets as well as…

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.