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12345 [234]
2 years ago
15

The amount of increase or decrease in cost that is expected from a particular course of action as compared with an alternative i

s a.product cost b.differential cost c.period cost d.discretionary cost
Business
1 answer:
krok68 [10]2 years ago
5 0

The amount of increase or decrease in cost that is expected from a particular course of action as compared with an alternative is differential cost.

<h3>What is Differential Cost?</h3>
  • Differential cost is the difference in costs between two possible decisions.
  • The expense arises when a company must choose between multiple similar choices and choose one while rejecting the others.
  • When faced with such circumstances, corporate executives must compare the costs and profits of each alternative to determine which is the most practical.
  • The expenses incurred to produce a product are referred to as its cost.
  • Direct labor, direct materials, consumable production supplies, and factory overhead are all included in these prices.
  • The cost of the labor necessary to provide a service to a customer can also be considered when calculating product cost.
  • In the latter scenario, all expenses associated with a service, such as compensation, payroll taxes, and employee benefits, should be included in the product cost.
  • Costs that cannot be recognized on a company's balance sheet are referred to as period costs.
  • In other words, they are recorded as an expense on the income statement in the period in which they are incurred. Some of the examples of Period cost are CEO salary, Marketing expense, selling, general and administrative expense.
  • If necessary, a business or household can live without a discretionary expense.
  • Nonessential spending is sometimes used to identify discretionary costs. This indicates that even if all discretionary consumer spending is stopped, a business or household can continue to function.

know more about Period cost brainly.com/question/13237619

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Both the satisfaction of creating new products and the possibility of earning money are _____ for an entrepreneur. risks incenti
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You’ve been invited to help a foreign affiliate of your company set next year’s prices. Inflation last year was 5%, the unemploy
kogti [31]

Answer: Above 5%

Explanation:

Unemployment has dropped to record lows which means that more people are able to afford goods and services. This increase in demand will shift the demand curve to the right thereby increasing prices.

Crude oil also rose in price which means that the price of gasoline has risen as well as the price of transport which is a major component of inflation.

Given these factors, inflation is sure to rise above the 5% level of the previous year.

4 0
3 years ago
Fact Pattern 18-B1
Roman55 [17]

Answer:

D) substantial, but not complete, performance

Explanation:

Even though Moses breached his contract with Noelle, most part of the contract was performed. The most significant part of the contract was the apartment itself, not the air conditioning system. For a material breach to exist Moses should have failed to perform in a greater way, not just the air conditioning. Probably Noelle should get a discount on the price of the apartment so that she can get the air conditioning system installed.

The fact that Noelle stopped paying for the apartment just because of this is a little overreacting. For example, if I buy a used car and the previous owner forgets to give me the spare tire, I cannot stop paying because it may be worth money but proportionally it's a small amount.

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3 years ago
Lance Chips granted restricted stock units (RSUs) representing 40 million of its $1 par common shares to executives, subject to
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Answer:

$200 million

Explanation:

Data provided in the question

Number of granted restricted stock = 40 million at $1 par common shares

The market price per share = $5

So, the total compensation cost is

= Number of granted restricted stock × market price per share

= 40 million × $5 per share

= $200 million

Basically we multiplied the number of granted restricted stock with the market price per share

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4 years ago
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