Collins inc. is investigating whether to develop a new product. in evaluating whether to go ahead with the project, which of the following items should not be explicitly considered when cash flows are estimated? select one:

a. the project will utilize some equipment the company currently owns but is not now using. a used equipment dealer has offered to buy the equipment.
b. the company has spent and expensed for tax purposes $3 million on research related to the new detergent. these funds cannot be recovered, but the research may benefit other projects that might be proposed in the future.
c. the new product will cut into sales of some of the firm's other products.
d. if the project is accepted, the company must invest $2 million in working capital. however, all of these funds will be recovered at the end of the project's life.
e. the company will produce the new product in a vacant building that was used to produce another product until last year. the building could be sold, leased to another company, or used in the future to produce another of the firm's products.

Richardson hired j. c. flood company, a plumbing contractor, to correct a stoppage in the sewer line of her house. the plumbing company's 'snake' device, used to clear the line leading to the main sewer, became caught in the underground line. to release it, the company excavated a portion of the sewer line in richardson's backyard. in the process, the company discovered numerous leaks in a rusty, defective water pipe that ran parallel with the sewer line. to meet public regulations, the water pipe, of a type no longer approved for such service, had to be replaced either then or later, when the yard would have to be excavated again. the plumbing company proceeded to repair the water pipe. though richardson inspected the company's work daily and did not express any objection to the extra work involved in replacing the water pipe, she refused to pay any part of the total bill after the company completed the entire operation. j. c. flood company then sued richardson for the costs of labor and material it had furnished. (c) for what, if anything, should richardson be liable? explain."

Which two of the following are benefits of consumer programs

Activity-based costing (abc) is not truly a cost collection mechanism as much as it is an inventory valuation method. the main purpose for implementing an activity-based cost system is to try to overcome some of the cost distortions that occur in traditional costing from product differences when there are variations in size and complexity. however, one of the disadvantages of utilizing abc is that the additional information gathering necessary to implement costing with that level of detail might be beyond the reach of some companies with resource or financial constraints. with this in mind, what kinds of industries or companies do you think would benefit most from using activity-based costing and why? in designing or modifying an accounting system to capture appropriate costs for abc, what considerations do you think would need to be made?