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What best describes the time value of money

18/11/2021 Client: muhammad11 Deadline: 2 Day

Question 1. What best describes the purpose of a budget?

Budgets are “cost reduction” tools (No. Budgets are “plans of action” tools)
Budgets are “plans of action” tools (Yes. Budgets are “plans of action” tools)
Budgets are “cost control” tools (No. Budgets are “plans of action” tools)
Budgets are none of the above (No. Budgets are “plans of action” tools)
Question 2. Which of the following are common causes for labor efficiency variances? Check all that apply:

Use of lower-skilled or higher-skilled workers. (Yes. Common causes for labor efficiency variances include use of lower-skilled or higher-skilled workers; effects of the learning curve; lower-quality or higher-quality materials; changes in methods or scheduling; and installation of new equipment.)
Effects of the learning curve. (Yes. Common causes for labor efficiency variances include use of lower-skilled or higher-skilled workers; effects of the learning curve; lower-quality or higher-quality materials; changes in methods or scheduling; and installation of new equipment.)
Sufficient training, correct instructions, or worker satisfaction. (No. Common causes for labor efficiency variances include use of lower-skilled or higher-skilled workers; effects of the learning curve; lower-quality or higher-quality materials; changes in methods or scheduling; and installation of new equipment.)
Lower-quality or higher-quality materials. (Yes. Common causes for labor efficiency variances include use of lower-skilled or higher-skilled workers; effects of the learning curve; lower-quality or higher-quality materials; changes in methods or scheduling; and installation of new equipment.)
Changes in methods or scheduling. (Yes. Common causes for labor efficiency variances include use of lower-skilled or higher-skilled workers; effects of the learning curve; lower-quality or higher-quality materials; changes in methods or scheduling; and installation of new equipment.)
Installation of new equipment. (Yes. Common causes for labor efficiency variances include use of lower-skilled or higher-skilled workers; effects of the learning curve; lower-quality or higher-quality materials; changes in methods or scheduling; and installation of new equipment.)
Well maintained equipment or machine malfunction. (No. Common causes for labor efficiency variances include use of lower-skilled or higher-skilled workers; effects of the learning curve; lower-quality or higher-quality materials; changes in methods or scheduling; and installation of new equipment..)
Question 3. What is the advantage of the accounting rate of return method?

It is easily applied because it uses readily available financial accounting data. (Yes. It is easily applied because it uses readily available financial accounting data.)
It ignores the time value of money (No. It is easily applied because it uses readily available financial accounting data.)
It generally assumes smooth cash flows over the project’s life regardless of the actual cash-flow pattern. (No. It is easily applied because it uses readily available financial accounting data.)
It includes depreciation expense and other accounting accruals in the calculation of project income, losing the purity of cash-flow data.(No. It is easily applied because it uses readily available financial accounting data.)

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