Accounting for Non-Accounting Students 9th. Edition by John R. Dyson, Ellie Franklin | 9781292128979 | 1292128976 | Holooly

Accounting for Business

Accounting for Non-Accounting Students

114 SOLVED PROBLEMS

Question: 19.5

The internal rate of return method Bruce Limited is considering whether to invest £50,000 in a new project. The project’s expected net cash flows would be as follows: ...

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Bruce Ltd Calculation of the internal rate of retu...

Question: 19.4

The net present value method Rage Limited is considering two capital investment projects. The details are outlined as follows: ...

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Rage Ltd Project appraisal: Project...

Question: 19.3

The accounting rate of return method Bridge Limited is considering investing in a new project, the details of which are as follows: ...

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The accounting rate of return would be calculated ...

Question: 19.2

The discounted payback method Newland City Council has investigated the possibility of investing in a new project, and the following information has been obtained: ...

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(a) Payback method Year Net cash flow Cumulati...

Question: 18.4

A special order Amber Limited has been asked by a customer to supply a specially designed product. The customer has indicated that he would be willing to pay a maximum price of £100 per unit. The cost details are as follows. ...

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In order to determine whether Amber Limited should...

Question: 19.1

The payback method Miln Limited is considering investing in some new machinery. The following information has been prepared to support the project: ...

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The payback period is as follows: £000 Cum...

Question: 16.2

Calculation of efficiency, capacity and production volume ratios The following information relates to the Frost Production Company Limited for the year to 31 March 2016: ...

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(a) The efficiency ratio:

\frac{Standard h...

Question: 18.1

Probability testing Company X sells one product codenamed A1. The marketing department has estimated that the sales of A1 for a forthcoming budget period could be £1000, £1500 or £2000. On further investigation it would appear that there is a 70 per cent chance that the sales will be £1000, ...

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The question requires us to calculate the expected...

Question: 18.2

A closure decision Vera Limited has three main product lines: 1, 2 and 3. The company uses an absorption costing system. The following information relates to the budget for the year 2018. ...

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Points 1 The first step in determining whether ...

Question: 18.3

A make or buy decision Zam Limited uses an important component in one of its products. An estimate of the cost of making one unit of the component internally is as follows. ...

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Points Assuming that the cost data given in the qu...

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