Use the Information Below to Answer the Following Question(s)

question 163

Multiple Choice

Use the information below to answer the following question(s) .Balloon Arrangements produces balloon bouquets.The following information has been provided by management:

-What is the cost per bouquet if throughput costing is used?

• A)$5.50
• B)$4.75
• C)$3.75
• D)$2.50
• E)$1.98

Understand the concept of the internal rate of return (IRR) and its application in investment evaluations.

Assess the significance of the payback period as a method for evaluating investment risk and return.

Identify and apply the profitability index to rank investment projects.

Calculate the net present value (NPV) of an investment to determine its financial viability.

---

Definitions:

Adjustment

An entry made in accounting records to correct or allocate transactions properly.

Service Company

A service company is a business that earns revenue through the provision of services, as opposed to selling physical products.

Merchandise Company

A business that purchases and sells goods, often retail or wholesale, as its primary activity.

Form 1120S

A tax document used in the United States to report the earnings, losses, and dividends of S corporation shareholders.