Shared Flashcard Set

Details

Ch 7-8
Decision Making and NPV
8
Accounting
Undergraduate 3
10/24/2012

Additional Accounting Flashcards

 


 

Cards

Term
What is not taken for consideration for Special Orders
Definition
 Fixed manufacturing overhead has to be used regardless if made or not
Term
What 3 parts are taken in consideration for Special Orders
Definition
DM DL Fixed Variable
Term
A decision that occurs when managers evaluate a proposed capital investment to determine whether it meets some minimum criteria is a(n)
Definition
screening decision.
Term
Which of the following would be included in net income but not in annual cash flows?
Definition
Depreciation
Term
The idea that the value of money changes over time because it can be invested to earn interest is the
Definition
investment value of money.
Term
Accounting rate of return.
Definition

 

=  Annual Net Income / Initial Investment
Term
Payback Period
Definition
=  Initial Investment / Annual Net Cash Flow
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