What is the focus of operations control?
What will be an ideal response?
Operations control focuses on how the international business utilizes operating systems within the organization as well as within individual subsidiaries and operating units, administration, distribution centers, and manufacturing facilities.
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Allocation of the transaction price to performance obligations:
A) Is based on relative standalone selling prices. B) Cannot be based on estimated selling prices. C) May not use the residual method when selling prices are uncertain. D) Is not allowed when bad debts are material.
Evaluate the following projects using the payback method assuming a rule of 3 years for payback
Year Project A Project B 0 -10,000 -10,000 1 4,000 4,000 2 4,000 3,000 3 4,000 2,000 4 0 1,000,000 A) Project A can be accepted because the payback period is 2.5 years but Project B cannot be accepted because it's payback period is longer than 3 years. B) Project B should be accepted because even though the payback period is 2.5 years for Project A and 3.001 for project B, there is a $1,000,000 payoff in the 4th year in Project B. C) Project B should be accepted because you get more money paid back in the long run. D) Both projects can be accepted because the payback is less than 3 years.