# Identify and describe three types of cost behaviors including examples

**Question description**

1. A project that cost $80,000 with a useful life of 5 yrs is being considered. Straight-line depreciation is being used and salvage value is $5,000. The project will generate annual cash inflows of $21,375. The accounting rate of return is?

2. Discuss the importance of the cash budget. Identify the individual sections of the cash budget and the information included in each section.

3. Identify and describe three types of cost behaviors including examples. Which would you prefer as a manager and why?

4. Construction of a building and equipment cost 630,000. The building and equipment will depreciate over 12 years using the straight line method and will have 0 salvage value. The required rate of return is 10%. Estimated annual net income and cash flows are $49,000 and $101,500. 4a)Calculate the net present value 4b)calculate the internal rate of return 4c) Calculate the payback period.

5. credit sales for august, sep, oct, and nov $270,000 $375,000 $420,00 and $240,000. Credits are made as follows: In month of sales 25% first month after sales 60% In second month after sales 10%. Determine the collections for October and November showing the work.

6. Product A : Budget sales 10250 units at $16 per unit Actual Sales: 12130 at $15.60 per unit

Product B: Budget sales 15560 units at $12 per unit Actual sales: 12940 units at $12.40 per unit

6a) Calculate the sales value variance 6b) calculate the sales price variance 6c) calculate the total sales variance

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