What do you mean by inflation, Financial Accounting

Assignment Help:

Q. What do you mean by Inflation?

Predicts of future inflation of sales prices and variable costs should be prepared Therefore that a nominal NPV evaluation is able to be undertaken. This evaluation must employ a nominal after tax cost of capital it isn't stated whether the 12% after-tax cost of capital is in nominal or real terms. Sales price is presumed to be constant in real terms but in practice substitute products are likely to occur leading to downward pressure on sales price and sales volumes.

Constant fixed costs

The supposition of constant fixed costs should be verified as being acceptable. Sales volumes are predict to increase by 40% and this increase may result in an increase in incremental fixed costs.


Related Discussions:- What do you mean by inflation

Fair value adjustments, explain the purpose and circumstances of using fair...

explain the purpose and circumstances of using fair values in preparing consolidated financial statements

Concepts in accounting, Mr. Inherits 30000. Decides to open a salon jj salo...

Mr. Inherits 30000. Decides to open a salon jj salon. On 1/4/2016 commits 10000 to the business Opens an a/c in the bank What will be the money under capital in his books on 1/4/10

A valid will-executorship laws and accounts, A Valid Will A will may be...

A Valid Will A will may be made: Orally; it will not be valid unless: 1. It is made before two or more competent witnesses (i.e. persons of sound mind and full age); and 2.

Finacial Reporting, What organizations are responsible for governing financ...

What organizations are responsible for governing financial reporting? What is the role of each organization? How have the roles changed in the last 20 years? How might their roles

Balance Sheet, What is the function of balance sheet

What is the function of balance sheet

Members voluntary winding up-liquidation of companies, Members Voluntary Wi...

Members Voluntary Winding Up The company may be wound up by the members themselves without reference to the creditors, if the company is solvent. 1) Declaration of solvency

Determine the investment''s net present value, Question Capital Expenditure...

Question Capital Expenditure Decisions and Investment Criteria Bodmin plc Bodmin plc is a highly profitable electronics company that manufactures a range of innovative produ

Explain about financial accounting standards, Q. Explain about Financial Ac...

Q. Explain about Financial Accounting Standards? Financial Accounting Standards - Official promulgations, also called STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS, by FINANCIAL

Evaluate price earnings ratio, Q. Evaluate Price Earnings Ratio? The P/...

Q. Evaluate Price Earnings Ratio? The P/E ratio is in general regarded as an important ratio for equity investors. The P/E for a company may be utilizing as a basis for compari

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd