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Lesson 1
Lesson 2
Lesson 3
Lesson 4
Lesson 5
Case Studies Index

  1. In the depreciation case above, when would it be economical not to consider the equipment as an asset?
    1. When nobody is willing to pay anything for it.
  2. In the inventory valuation case above, when would it be economical not to take the contract?
    1. When the labor costs go up by 2,500 or more.
  3. In the unutilized facilities case above, when would it be economical not to sublease the space?
    1. When the sublease offer is zero
    2. Also when the sublease period has to extend beyond a year.
  4. In the measurement of profitability case above, when would it be economical for the owner manager to continue operating the business?
    1. When the net sales are 508,000 and above.
    2. When the expenses drop by 8,000 or more (to 202,000 or less).
    3. When the salaries for managers drop by 8,000 or more (to 22,000 or less).
    4. When potential rent for the building drops by 8,000 or more (to 10,000 or less).
outcomes
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