
Concept Introduction:
Capital planning screening choices is a choice taken to decide whether a proposed venture meets certain preset necessities, for example, those in a cost/advantage examination. For instance, will that new bit of machine spare the organization enough cash to pay for itself, and are these funds more noteworthy than the arrival the organization could have gotten by essentially putting the price tag into the bank and accepting enthusiasm over an indistinguishable period from the helpful existence of the machine? On the off chance that the appropriate response is no, it isn't to the organization's leeway to get it.
Capital planning inclination choices is a planning choice. The organization thinks about a few elective tasks that have met their screening criteria - whether a base
Difference between capital budgeting screening decisions and capital budgeting preference decision.

Explanation of Solution
Solution:
At the point when an independent venture is pondering a noteworthy interest in its own particular future development, it is said to settle on a capital planning choice. Capital planning includes the outpouring of huge measures of cash. The organization spends this cash with the expectation that the activities will bring about an incredible cost reserve funds or increment in future benefits. There are two sorts of capital planning choices:
i) Screening: It identifies whether a proposed venture passes a preset obstacle, and
ii) Preference: It identifies with choosing among a few contending strategies.
The contrast between these two capital planning, screening choices and inclination choices is that screening choices identify with whether a proposed venture passes a preset obstacle, while inclination choices identify with choosing among a few contending game-plans
Want to see more full solutions like this?
Chapter 13 Solutions
Managerial Accounting
- General Accounting questionarrow_forwardWhat Is the correct answer A B ?? General Accounting questionarrow_forwardCullumber Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2025, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $16,800, direct labor $10,080, and manufacturing overhead $13,440. As of January 1, Job 49 had been completed at a cost of $75,600 and was part of finished goods inventory. There was a $12,600 balance in the Raw Materials Inventory account on January 1. During the month of January, Cullumber Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $102,480 and $132,720, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $75,600 on account. 2. Incurred factory labor costs of $58,800. 3. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $10,080; and various other…arrow_forward
- Ms. Sharon Washton was born 26 years ago in Bahn, Germany. She is the daughter of a Canadian High Commissioner serving in that country. However, Ms. Washton is now working in Prague, Czech Republic. The only income that she earns in the year is from her Prague marketing job, $55,000 annually, and is subject to income tax in Czech Republic. She has never visited Canada. Determine the residency status of Sharon Washtonarrow_forwardAns plzarrow_forwardanswer? ? Financial accountingarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





