CTUO Capital Budgeting Discussion Board

Description

Eddison Electric Company (EEC) provides electricity for several states in the United States. You have been employed as a cost accountant at this organization. The President of EEC recently called a meeting to announce that a firm has approached EEC about a possible acquisition. The President wants to consider this purchase and has requested that you and your staff analyze the feasibility of acquiring this supplier. Discuss the following:

  • Which costs would be utilized in making the decision to purchase the asset? Are future costs relevant in the decision-making process? Please justify and support your position.
  • List and discuss the pros and/or cons associated with this potential acquisition.

Responses to Other Students: Respond to at least 2 of your fellow classmates with at least a 100-word reply about their Primary Task Response regarding items you found to be compelling and enlightening. Support your response with academic references from your textbook and reputable Web sites from which the author’s name may be specifically documented. To help you with your discussion, please consider the following questions:

  • What did you learn from your classmate’s posting?
  • What additional questions do you have after reading the posting?
  • What clarification do you need regarding the posting?
  • What differences or similarities do you see between your posting and other classmates’ postings?