What is the proper treatment for increased working capital

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Reference no: EM132796736

Problem 1: Which of the following is likely to hinder the ability to identify the cause(s) of cost variances?

Option 1: The potential for a single cause to impact multiple variances

Option 2: The tendency for people to attribute unfavorable outcomes to themselves

Option 3: Prompt variance reporting

Option 4: Using multiple variances to evaluate performance

Problem 2: What is the proper treatment for increased Working Capital needs caused by a replacement decision?

Option 1: Show it as an after tax minus in all time periods

Option 2: Show it as an after tax minus in time period 0 and as an after tax plus in the last time period

Option 3: Show it as a minus in all time periods

Option 4: Show it as minus in time period 0 and plus in the last time period

Reference no: EM132796736

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