Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 15E: Gina Ripley, president of Dearing Company, is considering the purchase of a computer-aided...
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Please help with multiple choice questions.
![11. Within the value chain "support functions are" the:
a.
support activities provided to other internal business functions
b.
coordination and assembly of resources to produce a product or deliver a service
С.
mechanisms by which companies deliver products or services
d.
support activities provided to the customer
12. The management team at Spa Splash is considering investing in an Energies and
Herbal Bar. This bar will cost $200 000 and is estimated to have a useful life of 5
years, after which it will have no salvage value. Expected cash inflows are outlined
in the image given: What is the payback period for the project?
Years:
1
2
3
4
5
Cash Inflows: $80 000
$100 000
$80 000
$60 000
$50 000
a.
2 years 3 months
b.
1 year 10 months
С.
2 years 4 months
d.
1 year 4 months
13. Which of the following adequately describes Management Accounting? It is the
process of identifying, measuring and:
a.
analysing financial information
b.
accumulating information developed for external users
C.
analysing information
d.
accumulating information developed for managers](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1cb2edfb-9d78-4fce-b39c-d9a0d22d3df3%2Fbf7947d6-b415-429c-8893-352522f6e073%2Frwzxar_processed.png&w=3840&q=75)
Transcribed Image Text:11. Within the value chain "support functions are" the:
a.
support activities provided to other internal business functions
b.
coordination and assembly of resources to produce a product or deliver a service
С.
mechanisms by which companies deliver products or services
d.
support activities provided to the customer
12. The management team at Spa Splash is considering investing in an Energies and
Herbal Bar. This bar will cost $200 000 and is estimated to have a useful life of 5
years, after which it will have no salvage value. Expected cash inflows are outlined
in the image given: What is the payback period for the project?
Years:
1
2
3
4
5
Cash Inflows: $80 000
$100 000
$80 000
$60 000
$50 000
a.
2 years 3 months
b.
1 year 10 months
С.
2 years 4 months
d.
1 year 4 months
13. Which of the following adequately describes Management Accounting? It is the
process of identifying, measuring and:
a.
analysing financial information
b.
accumulating information developed for external users
C.
analysing information
d.
accumulating information developed for managers
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