NUBD Company has two divisions, X and Y. Information for each division is as follows: Net earnings after tax for division Asset base for division Target rate of return Margin Weighted average cost of capital P40,000 P100,000 15% 10% 15% P260,000 P1,200,000 18% 20% 15%

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: Why are some analyses called horizontal and others calledvertical?

A: In order to identify the reason behind that some analyses are called horizontal and others are…

Q: What is an operating segment?

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

Q: What’s the primary difference between the MIRR and the regular IRR?

A: It refers to the rate of return that is computed by the company to make a decision of selection of a…

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 do you mean by Count Data? When it arises?

A: Count data:  Count data is a kind of statistical data, in which the observations might only consider…

Q: What can be understood from “Segment Reporting"?

A: Financial reporting:   It refers to the disclosure of financial results of an organization for a…

Q: What is common size analysis?

A: Answer: Common size analysis that measures the percentage sums of each element on the financial…

Q: Why should the FIFO method be called a modified or department FIFO method?

A: First-in-First-Out (FIFO):In this method, items purchased initially are sold first. So, the value of…

Q: How does the change in the PBO occur?

A: Projected Benefit Obligation:   It is a pension concept in accounting as it is the present value of…

Q: How do you think the "organizer of activity"?

A: The question seems confusing. Therefore, I am answering the following terms: Organized activity…

Q: What is Mark-up chain?

A: Introduction: Markup is generally shown as a percentage of the cost or the sale price. The term…

Q: What does the CF stand for?

A: Solution:- Mean, median and mode are measures of averages of data.

Q: What are the levels of data hierarchy?

A: Accounting Information System:   This refers to a system that is adopted by an organization to…

Q: What is goal congruence?

A: Organizational structure: An organizational structure refers to a system that outlines how certain…

Q: Distinguish between cumulative or noncumulative?

A: cumulative and noncumulative preferred is assumed since the key term is not given.

Q: Define split-off point.

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

Q: How is materiality concept applied?

A: Accounting principles:

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: What is multiple discriminant analysis?

A: Multiple discriminant analysis (MDA) is a statistical method used by many financial planners to…

Q: What is meant by the term decentralization?

A: Decision-making process:Decision making can be defined as the process of making choices through the…

Q: Which excel formula is this

A: Solution:- When an equal amount is withdrawn each period, it is known as annuity.

Q: What is the difference between the CML and the SML?

A: The term CML refers to capital market line. Whereas the term SML refers to security market line.