Thursday, December 19, 2019

Accounting And Finance For Technology - 1343 Words

ACCOUNTING AND FINANCE FOR TECHNOLOGY PART I SUPER PROJECT CASE - INDIVIDUAL BY: VINEET GUPTA TABLE OF CONTENTS QUESTION 1 - 1: 2 What are the relevant cash flows that general foods should use in evaluating the super project? 2 QUESTION 1 - 2: 5 In Particular, how should management deal with such issues as Test-Market Expenses, Overhead Expenses, Erosion of Jell-O contribution margin, and Allocation of charges for the use of the excess agglomerator? 5 1. Test-Market Expenses: 5 2. Overhead Expenses: 5 3. Erosion of Jell-O contribution Margin: 6 4. Allocation of charges for the use of the excess agglomerator: 6 References 6 Acronyms 7 QUESTION 1 - 1: What are the relevant cash flows that general foods should use in evaluating the super project? In this case, Crosby Sanberg and his team calculated cash flows by using payback period and ROFE method. Crosby and his team further provided the limitations and problems that are inherent in using incremental ROFE and payback and provide a rationale for adopting new techniques. After providing the Alternative techniques, they concluded that the incremental basis for evaluating the project is inadequate measure of project’s worth when existing facilities with a known future use will be utilized extensively. This was also concluded that overheads increase in proportion to the size and complexity of the business and provides the best long-rage projections of the financial consequences based upon the fully allocatedShow MoreRelatedThe Mission Of The Accounting And Financial Functional Area1266 Words   |  6 PagesThe mission of the Accounting and Financial Functional Area is to effectively and ethically fund the operations of our company. To facilitate our growth and to provi de the necessary control of costs that will allow our business to flourish domestically and in new foreign markets. 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