Which of the following best describes why the predicted incremental earnings arising from a given decision are not sufficient in and of themselves to determine whether that decision is worthwhile? A) They do not show how the firm's earnings are expected to change as the result of a particular decision.
B) They are not easily predicted from historical financial statements of a firm and its competitors.
C) These earnings are not actual cash flows.
D) They do not tell how the decision affects the firm's reported profits from an accounting perspective.


Answer 1

Answer and Explanation:

C) These earnings are not actual cash flows.  

Related Questions

Race One Motors is an Indonesian car manufacturer. At its largest manufacturing​ facility, in​ Jakarta, the company produces subcomponents at a rate of per​ day, and it uses these subcomponents at a rate of per year​ (of 250 working​ days). Holding costs are ​$ per item per​ year, and ordering costs are ​$ per order.Part 2​a) What is the economic production​ quantity? enter your response here units ​(round your response to two decimal​ places).
There is a direct relationship between the par value and market value of common stock: stocks with a low par value have a low market value, while stocks with a high par value have a high market value.a. Trueb. False
Duke Energy has 14 coal sites throughout the state of North Carolina. Removing the coal ash from the sites has high costs today and provides possible future benefits. You are tasked with advising the governor of North Carolina on whether to require Duke Energy clean up all of its coal ash sites. The benefit of cleaning up the sites is the reduced risk of a potential spill and the costs associated with a spill.All numbers are in real dollars (inflation corrected) and are expressed in present value terms (no need to discount- this has been done for you). Here are the facts: Cost of cleaning up coal ash sites is $30 million today. If the coal ash is not cleaned up a. There is a 10% chance the coal ash ponds flood and causes $70 million dollars in damages. b. There is a 20% chances the coal ash seeps into the ground water causing $100 million in damages. c. There is a 70% chance the coal ash sites cause no damage to the state of North Carolina. 1. What is the expected benefit of cleaning up the coal ash site (i.e. how much do we expect to avoid in future damages)? 2. What sort of analysis would you undertake to advise the governor? Would you recommend the governor require Duke clean up the coal ash sites? (no need to complete calculation, just write the formula used for decision making)?
Mickley Company’s plantwide predetermined overhead rate is $20.00 per direct labor-hour and its direct labor wage rate is $15.00 per hour. The following information pertains to Job A-500: Direct materials $ 280 Direct labor $ 150 Required: 1. What is the total manufacturing cost assigned to Job A-500? 2. If Job A-500 consists of 70 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.)
Sherri's Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of the year:Month Number of Appointments Total CostJanuary 325 5,900February 375 6,200March 300 5,650April 350 5,450May 275 5,550June 450 6,250Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. (Round your "Variable Cost per Unit" answer to 2 decimal places and "Fixed Cost" answer to the nearest dollar amount.)

At December 31, 2018, Novak Corp. Company had a credit balance of $ 18,000 in Allowance for Doubtful Accounts. During 2019, Novak Corp. wrote off accounts totaling $ 13,300. One of those accounts ($ 3,200) was later collected. At December 31, 2019, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $ 27,200. Prepare journal entries to record the 2019 transactions of Novak Corp. Company




The journal entries are shown below:

1. Allowance for Doubtful Accounts A/c Dr $ 13,300

      To Accounts receivable A/c $ 13,300

(Being written off amount is recorded)

2. Accounts receivable A/c Dr  $3,200

      To  Allowance for Doubtful Accounts A/c $3,200

(Being reverse written off)

3. Cash A/c Dr  $3,200

        To Accounts receivable A/c  $3,200

(Being amount collected)

4. Bad debt expense A/c Dr   $19,300

           To Allowance for doubtful debts   $19,300

(Being bad debt expense is recorded)

The computation of the bad debt expense is shown below:

Ending balance of Allowance for Uncollectible Accounts = Beginning balance of Allowance for Uncollectible Accounts + 2019 bad debts - 2019 write off amount  + collected amount

$27,200 = $18,000 + 2019 bad debts - $13,300 + $3,200

$27,200 = $7,900+ 2019 bad debts  

So,2019 bad debts = $27,200 - $7,900 = $19,300

Assignment I1. On March 1, 2020, Tahir Muktar, a famous businessman in Addis, opened a business named “Universal Garage” which is organized as a sole proprietorship. The business is established to render car repair, maintenance and related services for fees. Below are chart of accounts for and selected transactions completed by Universal Garage in March 2020.

a) Chart of accounts

Universal Garage

Chart of Accounts



111 Cash

112 Accounts Receivable

114 Supplies

116 Prepaid Rent

117 Prepaid Insurance


121 Land

123 Machinery

123.1 Accumulated Depreciation-Machinery

125 Office Equipment

0.1 Accumulated Depreciation-Office Equipment



211 Account Payable

213 Salaries Payable

216 Interest Payable


221 Long-term Bank Loan


301 Tahir, Capital

302 Tahir, Drawings

303 Incomes Summary


401 Fees Earned

410 Other Income


501 Salary Expenses

502 Supplies Expenses

503 Rent Expenses

504 Insurance Expenses

505 Depreciation Expenses

506 Interest Expenses

510 Miscellaneous Expenses

b) Transactions

Mar 1 Received the following assets from its owner, Tahir:

Cash....................................... Br, 8,300

Supplies ................................. 2,000

Office Equipment................... 10,000

2 Borrowed Br 5,000 from Dashen Bank

3 Paid Br 1,800 for rent on a building leased for business purposes

3 Purchased welding and other repair machinery for Br 3,600 cash

4 Paid Br 200 for a radio advertisement

8 Sold for Br 200 cash an old office equipment with a recorded cost of Br 200

13 Paid weekly salary Br 1,200

16 Received Br 4,400 from services rendered on cash

20 Paid weekly salary Br 1,200

20 Received Br500 royalties for idle repair machinery it leased to other businesses

20 Delivered service on credit, Br 6,000

21 Purchased additional repair machinery on account for Br 2,000 from Sámi-Engineers

23 Received Br 5,000 additional cash investment from its owner

24 Repaid Br 1,000 bank loan and paid Br 100 interest on bank loan

26 Purchased supplies for Br 800 cash

27 Paid Br 100 for customer entertainment and other items

27 Paid weekly salary Br 1,200

31 Paid Br 500 for electricity and other utilities consumed during the month

31 Received Br 4,200 cash from credit customers

31 Paid Tahir Br 1,800 for personal uses


a) Journalize the above transactions in a two-column journal

b) Post the journal entries to “T” accounts

c) Prepare and complete a worksheet based on the following additional information

i. Cost of supplies remained unconsumed on Mar 31 is Br 900

ii. The amount paid on Mar 3 is for a three-month rent

iii. The amounts of depreciation for machinery and office equipment are estimated to be Br 560 and Br 1,900 respectively

iv. Universal Garage usually pays Br 1,200 for employee's salary every saturday for a six-day work week ended on that day

v. Interest on bank loan accrued but not paid on March 31 total Br 100

d) Prepare financial statements for the month

e) Journalize and post adjusting entries

f) Journalize and post closing entries

g) Prepare post-closing trial balance



bla boa black sheep have u any wool no sir no sir

Hatfield Corporation, which has only one product, has provided the following data concerning its most recent month of operations:Selling price $123Units in beginning inventory 0Units produced 6,400Units sold 6,100Units in ending inventory 300Variable costs per unit: Direct materials $45 Direct labor $30 Variable manufacturing overhead $1 Variable selling and administrative $8Fixed costs: Fixed manufacturing overhead $140,800Fixed selling and administrative $91,500What is the net operating income for the month under variable costing?a) $12,200b) ($17,200)c) $5,600d) $6,600



Instructions are below.


Giving the following information:

Selling price= $123

Units sold= 6,100

Variable costs per unit:

Direct materials $45

Direct labor $30

Variable manufacturing overhead $1

Variable selling and administrative $8

Fixed costs:

Fixed manufacturing overhead $140,800

Fixed selling and administrative $91,500

First, we need to calculate the total variable cost per unit:

Variable cost per unit= 45 + 30 + 1 + 8= $84

Income statement:

Sales= 6,100*123= 750,300

Total variable cost= 6,100*84= (512,400)

Contribution margin= 237,900

Fixed manufacturing overhead= (140,800)

Fixed selling and administrative= (91,500)

Net operating income= 5,600

The consumer packaged goods industry is one with several large competitors, soaring raw materials prices, and strong demands from powerful retailers for lower prices. As a result, Colgate-Palmolive Co. and Unilever Group, the makers of products such as Colgate toothpaste and Ben & Jerry's ice cream respectively, both reduced their earnings forecasts. However, Procter & Gamble, another consumer packaged goods company, did not. At P&G, innovation is a key attribute, which allowed the firm to update all 200 of its brands and to develop products like Crest Whitestrips that consumers crave. P&G also used its marketing know how to develop unique product placements on television shows that highlight its brands. A SWOT analysis for P&G would indicate that soaring raw materials prices are a __________ while the product placement that features its brands on TV shows is a _________.A. strength; weakness
B. weakness; threat
C. threat; opportunity
D. opportunity; threat
E. opportunity; strength



C. threat; opportunity


A SWOT analysis is a tool that companies use to identify their strengths, weaknesses, opportunities and threats:

-Strengths refer to the things that the company can do well.

-Weaknesses refer to  the things in which the company doesn't perform well.

-Opportunities refer to external situations that provide the company an advantage it can take to improve its performance.

-Threats refer to external situations that provide a difficult environment for the company to perfom well.

According to this, the answer is that a SWOT analysis for P&G would indicate that soaring raw materials prices are a threat because this an external situation that affects the company and the product placement that features its brands on TV shows is an opportunity because product placements are a form of advertising that the company can take advantage of to target its customers.

According to the video, what do Financial Analysts analyze? Check all that apply.financial records
travel distances
insurance claims
a company's competitors



-financial records

-a company’s competitors


Financial Records

A Company’s Competitors


I got it right on edge 2020 hope this helps!

Equivalent units, zero beginning inventory. Candid, Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 2017, the company incurred $800,000 on direct materials and $805,000 on conversion costs, for a total manufacturing cost of $1,605,000. 1. Assume there was no beginning inventory of any kind on January 1, 2017. During January, 5,000 cameras were placed into production and all 5,000 were fully completed at the end of the month. What is the unit cost of an assembled camera in January





Given that;

Direct materials = $800,000

Conversion cost = $805,000

Total manufacturing cost = $1,605,000

Units produced = 5,000

We will get the unit cost by dividing the total cost with the number of units produced.


Units cost = Total cost / Number of units

Unit cost = $1,605,000 / 5,000

Unit cost = $321

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