WILL GIVE BRAINLEST!!!

By shutting down, a firm A. stops receiving revenue and is stuck with its fixed costs. B. can avoid paying taxes on its previou

wel

Answer:

option A

Explanation: A firm cannot avoid paying taxes on previous profits as these profits were earned before the shutting down period and generally the taxes on profits for current period are paid at a later period. Thus option B is incorrect.

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Revenue is the total income that a business gets from its normal operations and variable cost is the cost that changes with the level of output. Thus, there will be no revenue and also variable cost. Hence option C is incorrect.

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Sunk cost are the costs that cannot be recovered and are already been incurred.So a company can avoid its variable cost by shutting down but not its sunk cost. Hence option D is incorrect.

.

Fixed costs are the costs that are independent of the level of output. Therefore, a company after shutting down will not receive revenue but will have to bear fixed cost. Hence option A is correct.

4 0

4 years ago

Bill Pope has developed a new device that is so exciting he is considering quitting his job in order to produce and market it on

labwork [276]

Answer:

Costs of: Opportunity Sunk Variable Fixed MOH Product Selling Differential

Garage rent (Fixed)........................................X

Utilities (Fixed).................................................X

Cost of the industrial design course (Sunk) ... ''the cost has been spent''

Equipment rented .(Fixed)...............................X

Material cost (Variable)...................X

Labor cost (Variable).......................X

Present salary (Opportunity cost / Differential Cost)..'He wont earn anymore'

Advertising (Fixed and Selling Costs)............X...................................X

Explanation:

Costs of: Opportunity Sunk Variable Fixed MOH Product Selling Differential

Garage rent (Fixed)........................................X

Utilities (Fixed).................................................X

Cost of the industrial design course (Sunk) ... ''the cost has been spent''

Equipment rented .(Fixed)...............................X

Material cost (Variable)...................X

Labor cost (Variable).......................X

Present salary (Opportunity cost / Differential Cost)..'He wont earn anymore'

Advertising (Fixed and Selling Costs)............X...................................X

1. Garage rent is fixed Manufacturing Overhead because he will pay a fixed rent amount every month.

2. Utilities is fixed Manufacturing Overhead because he will pay a fixed amount every month.

3. Cost of the industrial design course is Sunk because the cost has been spent already

4. Equipment rented is fixed Manufacturing Overhead because he will pay a fixed amount every month.

5. Material cost is variable because it will depend on how much produced every month.

6. Labor cost is variable because it will depend on how much produced every month.

7. Present salary is an Opportunity cost because wont earn salary anymore when he starts the business; this is also differential because it is the difference between the cost of the two alternative decisions

Advertising is a fixed Selling costs because he will pay a fixed amount every month and it is related to sales not production.

4 0

3 years ago

A manager is concerned that there isn’t enough time spent on production and too much time spent on setups. The manager decides t

r-ruslan [8.4K]

It will result in an increase in average inventory as larger batches require more time to be completed.

<h3>What is Operations Management?</h3>

Operations management (OM) is the management of business practices within an institution to achieve the highest level of efficiency possible. It is involved with converting materials and labor as efficiently as feasible into goods and services in order to maximize an institution's profit.

<h3>What are the 3 types of operations management?</h3>

Product design and product.
Planning and managing of manufacturing facilities.
Purchasing/procurement.
Forecasting.
Capability planning.
Inventory control.
Quality control.
Delivery to clients.

To learn more about Operations management, refer

brainly.com/question/1382997

#SPJ4

3 0

2 years ago

The resources that contribute to the creation of wealth are known as ______.

vodka [1.7K]

<span>production coefficients.

factors of production.

production technologies.

production aggregates.</span>

7 0

3 years ago

Read 2 more answers

Marketing traditionally has been divided into a set of four interrelated decisions and consequent actions known as the?

My name is Ann [436]

Marketing traditionally has been divided into a set of four interrelated decisions and consequent actions known as the marketing mix

This is further explained below.

What is the marketing mix?

Generally, The marketing process has historically been broken down into a series of four choices and subsequent actions that are together referred to as the marketing mix.

In conclusion, The "marketing mix" is a program made for businesses that have traditionally centered around the product, price, put, and promotion. The term "marketing mix" refers to this model.