To calculate the plantwide overhead rate, first divide total overhead by the number of direct labor hours used to find the overhead per labor hour. Next, multiply the overhead per labor hour by the number of labor hours used to …
Leia maisHow is opportunity cost rate used in discounted cash flow analysis?
It is a valuation method used to estimate the attractiveness of an investment opportunity. The discounted rate applies in DCF analysis is affected by an opportunity cost affects project selection and selecting a discounting rate. DCF analysis finds the present …
Leia maisHow is the operations budget used as a control tool?
Budgeting refers to the process of designing, implementing, and operating budgets. Budgeting, as a control tool, provides an action plan to ensure that the organization’s actual activities are least deviated from the planned activities. Budgets are used to give an …
Leia maisIs net position the same as net assets?
Net position in the balance sheet (or statement of net position) of a local and state government is the difference between total assets plus deferred outflows of resources, and total liabilities plus deferred inflows of resources. Is Net Position net …
Leia maisWhich is better absorption or variable costing?
Variable costing results in gross profit that will be slightly higher. In turn, that results in a slightly higher gross profit margin compared to absorption costing. Is variable costing or absorption costing better? Absorption costing also provides a company with …
Leia maisWhat is multiple cash flow?
Future Value, Multiple Cash Flows Finding the future value (FV) of multiple cash flows means that there are more than one payment/ investment, and a business wants to find the total FV at a certain point in time. How do …
Leia maisWhat is the purpose of retained earnings?
Retained earnings are an important variable for assessing a company’s financial health because it shows the net income a company has saved over time, and therefore has the ability to reinvest in the business or distribute to shareholders. What is …
Leia maisCan you compare or combine cash flows at different times?
No, you cannot compare or combine cash flows at different times. A dollar today and dollar in one year are not equivalent. Can you compare cash flows that take place at different points in time? Cash flows at different points …
Leia maisHow do you calculate break even on rental property?
It’s easy to calculate. By simply dividing 10,000 (the cash shortfall) by 400,000 (the value of the property) and multiplying the figure by 100 (to make it a percentage) we obtain an answer of 2.5%. Therefore, if the property grows …
Leia maisWhat does it mean if the SPI is less than one?
running behind schedulethe project is running behind schedule. What does SPI greater than 1 mean? When CPI or SPI are greater than 1.0, this indicates better-than-planned project performance, while CPI or SPI less than 1.0 indicates poorer-than-planned project performance. Is …
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