Explaining the importance of preparing sensitivity report

Assignment Help Financial Accounting

Reference no: EM131211351

Imagine that you are the cost accounting manager and the director of your present or past organization. Management wants your opinion on whether the company should manufacture a new electric car. You informed management that you will need to perform a sensitivity analysis prior to making that decision. Compose a brief report to management explaining the importance of preparing a sensitivity report. Identify two (2) questions the sensitivity analysis should answer.

Reference no: EM131211351

Questions Cloud

The amount of cash collected from customers : The balance in accounts receivable at the beginning of 2016 was $300. During 2016, $1,600 of credit sales were recorded. If the ending balance in accounts receivable was $250 and $100 in accounts receivable were written off during the year, the amoun..

What is the balance in allowance for sales returns account : Rusty Hardware makes only cash sales. It began 2016 with a credit balance of $32,000 in the refund liability account. Sales during 2016 were $600,000. Rusty estimates that 6% of all sales will be returned. During 2016, customers returned merchandise ..

In periodic inventory system : In a periodic inventory system, the quantity of ending inventory is determined by_______.

What is the balance in the allowance for sales returns : False Value Hardware began 2016 with a credit balance of $32,000 in the allowance for sales returns account. Sales and cash collections from customers during the year were $650,000 and $610,000, respectively. False Value estimates that 6% of all sale..

Explaining the importance of preparing sensitivity report : Imagine that you are the cost accounting manager and the director of your present or past organization. Management wants your opinion on whether the company should manufacture a new electric car. You informed management that you will need to perform ..

Difference between a deferred asset and deferred liability : Imagine that you work in an accounting firm and your boss has requested you to present an overview of the tax structure to your organization. Two presentations have been requested. The first is a presentation that explains the differences between the..

Budgeted manufacturing overhead costs for the first quarter : Pumped Up Kicks is a distributor of boots throughout the Southeast. The company is currently in the process of preparing its budget for 2012. The company expects sales in 2012 to remain constant at? 12,000 units per month. What are the? company’s bud..

Amount of the allowable foreign income tax credit : Dave is a U.S. citizen who works in a foreign country for a few months, earning $20,000 U.S. He pays $5,000 in tax to the foreign country. He earns a total of $80,000 subject to U.S. tax and pays $24,000 in U.S. tax. What is the amount of the allowab..

Cash balance items listed in its trial balance : Wilson Company had the following cash balance items listed in its trial balance at 12/31/2016: Peterson Savings and Loan: $50,000 Right Bank: ( 5,000) Clinton County Trust Bank: 10,000 If Wilson reports under IFRS, its 12/31/2016 balance sheet would ..

User Account

All Pages