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Differential Cash Flow Model
The note describes a short-run operating decision-making model that may be used to evaluate alternate courses of action. The note covers qualitative versus quantitative analysis, relevant costs for the model, and differential investments. As well, cost behaviour, financial charges on new investments and divestments are also covered. -
Foote's Print and Design Shop Inc.
A small print and design shop describes accounting activities relating to its accounts receivable during one fiscal period. Such activities include the write-off and recovery of accounts collections during and after the discount period as described in the company's credit terms, sales allowances, and the determination of bad debt expense.