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Bayesian revision of probabilities
Seepage from dams containing uranium tailings is known to cause radio-active pollution of surrounding ground water of an average of 1 dam in 2000. The presence of radio-active pollution can be tested using a geiger-counter. This instrument, however, provides imperfect signals. Background atmospheric radiation causes it to indicate the presence of radio-active seepage on 15% of the occasions when no radio-active seepage has occurred. However, when radio-active seepage has occurred, it fails to accurately signal the presence of radio-active pollution only 2% of the time.
If a geiger-counter measurement indicates the presence of radio-active pollution, what is the probability that radio-active seepage has occurred?
The minivan is expected to have a $10,000 salvage value at the end of 10 years. This delivery service is expected to generate net cash inflows of $20,000 per year in each of the 10 years. Apnea's cost of capital is 9%. Calculate the NPV of this in..
Mattresses-A-Million produces Pillow-Top mattresses. They have been using a volume-based costing system to allocate overhead based on direct labor-hours. The Pillow-Top requires two hours of direct labor.
The following monthly budgeted data are available for a wholesale company: Calculate the break-even sales for the month. Calculate the margin of safety in sales dollars.
Write a memo in 3 pages to the budget managers in an organization, assuming you are the CEO. Your memo should direct budget managers not to utilize this approach, but also offer a logical rationale, and perhaps an alternative solution.
Sales in the first quarter of 2015 are expected to be 25% higher than sales in the same quarter in 2014 and prepare quarterly production budgets for each quarter and in total for 2014.
Describe how a 3 percent decline in sales at Home Depot could cause the 21 percent decline in profits. What accounting concept was involved, how were the many major types of costs incurred by Home Depot likely affected by decline in its sales
Energy Inc. is working on its direct labor budget for next two months. Each unit of output needs 0.77 direct labor-hours.
Evaluate and use quantitative and qualitative information to measure financial and non financial performance of an organisation
Mallory Corporation produces two products: A and B. The company's expected factory overhead costs for the coming year are as follows: Calculate the predetermined overhead rate based on direct labor hours and based on machine hour. Calculate the unit..
When determining end of period production cost variances, which of the following product costs components will require flexing?
Evaluate the capital loss
Provide calculations and reasons to support your answer. b. If Maximus Company has excess machine capacity but a limited amount of labour time available, to which product or products should the excess production capacity be devoted? Provide calculati..
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