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 14 Solutions
MANAGERIAL ACCOUNTING W/ACCESS
- Please give me true answer this financial accounting questionarrow_forwarda) Prepare the lease schedule for the Kaizen Limitedb) Prepare Kaizen’s journal entries for 2016 & 2017 c) If the lease agreement could be cancelled at any time without penalty. Would your answer in part a change? If yes, explain how and why.arrow_forwardHelp me with Q4, the answer CANNOT BE THE FOLLOWING, AS I TRIED AND GOT AN INCORRECT ANSWER: 1353.6, 1360.8, 1332As per question, DO NOT ROUND ANY CALCULATIONS, AND ROUND ANSWER TO 2 DECIMALarrow_forward
- Please help me with the error in Q4arrow_forwardGeneral accounting questionarrow_forwardCariman Company is a manufacturer with two production departments (Machining and Assembly) as well as two support departments (Human Resources and Information Services).For the last quarter of 2020, Cariman’s cost records indicate the following:SUPPORT PRODUCTIONHuman Resources (HR)Information Services(IS)MachiningAssemblyTotalBudgeted overhead costs before any inter-department cost allocations$400,000$2,000,000$10,912,000$14,916,000$28,228,000Support work supplied by HR (Number of employees)025%40%35%100%Support work supplied by IS (Processing costs)10%030%60%100%Required:1. Allocate the two support departments’ costs to the two operating departments using the following methods:a. Direct method b. Step-down method (allocate HR first) c. Step-down method (allocate IS first) d. The Algebraic method.2. Compare and explain differences in the support-department costs allocated to each production department. 3. What approaches might be used to decide the sequence in which to allocate…arrow_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





