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Question: Activity-Based Costing
1. Define activity-based costing (ABC) systems. What benefits does implementing an ABC system bring to the company? Explain at least two benefits.
2. What are the disadvantages to implementing an ABC system? List and explain at least two.
3. Read the following article: "Rethinking Activity-Based Costing" and answer these questions:
• Do you agree or disagree with the analysis of the ABC drawbacks expressed in the article? Fully explain your position in your own words.
• Would the proposed changes make ABC a universally applicable costing method in your opinion? Why or why not? Elaborate your response.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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