Answer:
A. Opportunity cost
Explanation:
In Economics, Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.
Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.
Hence, the opportunity cost of a choice is the benefits that could be derived in from another choice using the same amount of resources.
For instance, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invest the same amount of resources in a salon business or any other business as the case may be.
In this scenario, you choose to complete your homework rather than watch television so that you can earn a good grade. Therefore, you made the choice with the lowest opportunity cost.
Answer:
The estimated rate based on labour hour==6
The actual rate based on labour hour=6.08
The rate based on machine hour=24
The rate based on machine hour= 22.66
Explanation:
Given that Carlson estimated its overhead costs to be $240,000,direct labor hours at 40,000 and machine hours at 10,000 as well as the actual overhead costs incurred of $249,280, actual direct labor hours of 41,000, and actual machine hours of 11,000.We can calculate the to apply .
The estimated rate based on labour hour=240000/40000=6
The actual rate based on labour hour=249280/41000=6.08
The rate based on machine hour=240000/10000=24
The rate based on machine hour=249280/11000=22.66
Jenna used the vendor bid analysis
.
Option D
<u>Explanation:
</u>
Vendor Bid Analysis is the tool of evaluating the proposals received by many suppliers to determine the cost of such a project. This can be done by taking into account the risk provided for project works (through quotations, deals, proposals, etc.).
The buyer's side can take account of documents from existing agreements, meeting qualitative needs, capability and infrastructure, establishing time limits for records, financial capacity, and services when analyzing the offers of a good or service.
This is not an official offer to purchase the property, but rather a public declaration that the seller isn't satisfied with the last offer which is used to keep the deal on track.
Answer:
Projects A,B,C,D and E should be accepted
Explanation:
Based on the fact that each of the itemized projects has the same of level of risk as the company's existing assets, we suggest that the firm undertake those projects that gives a return rate which is above the current weighted average cost of capital of 10.5%
In essence,projects A,B,C,D and E should be accepted as they 12%,11.5%,11.2%,11% and 10.7% returns on investment respectively.
Projects F& G would be rejected on the premise that their rates of return are lower than what is currently obtainable in Midwest Water Works.
