Answer:
The correct answer is letter "E": both A and B.
Explanation:
At the moment of creating a strategic plan, companies must also outline contingency strategies in case the master plan does not work. These contingency plans work as alternative systems that, just like the master plan, englobe all the activities and steps the firm will follow to keep the business up and running.
Therefore, the alternative systems also include the resources available the firm counts on to conduct its operations which will also let the company be aware of the limits it has in the for its day-to-day and long-term activities.
Answer:
Cost per equivalent unit: $60
Explanation:
Cost per equivalent unit = (Cost of Beginning Work in Progress Inventory + Total production cost during the period) / Equivalent Units of Production (EUP)
Total Production Cost = $90,000
Equivalent Units of production (EUP) = 1,300 + 400 x 50% = 1,500 units
Cost per equivalent unit: $90,000 / 1,500 units = $60
Both but fixed goes first so a is correct
Answer:
a. $2,465.82
b. $3,539.68
c. Yes, we should
Explanation:
Annual cost to maintain old forklift is $5,000
Equivalent Annual Cost (EAC) of new forklift = (Asset price x discount rate)/(1-(1+discount rate)-n), in which n is the number of year for usage of this forklift?
If discount rate is 4% per year, the EAC of new forklift is $2,465.82
= ($20,000x4%)/(1-(1+4%)-10)
If discount rate is 12% per year, the EAC of new forklift is $3,539.68
= ($20,000x12%)/(1-(1+12%)-10)
We should replace because with such above discount rate, the old forklift is more costly than the new one