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4 years ago

Which of the following statements is CORRECT?

Business

1 answer:

yarga [219]4 years ago

6 0

Answer:

Option A

Explanation:

Firms treat Weighted average cost of capital(WACC) as the discount rate to calculate the net present value of a business and to evaluate investments that are most essential for capital budgeting.

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What do the europeon union and the world trade organization have in common

JulijaS [17]

The European union and the World trade organization have trade policy as common.

<u>Explanation: </u>

World Trade Organization (WTO) comprises governments and border control territories that establish, implement, and enforce international trade rules. European Union and the individual EU Member States are members of WTO.

To make sure that rules-based global trade process, the WTO is involved. Despite the deadlock in negotiations, ways are being examined to upgrade WTO rules and tackle new international challenges.

New developments in the WTO trade rules have been brought about by the coming into effect of the Trading Facilitation Agreement in February 2017. Parliament passes legislation in conjunction with the Council under the Treaty of Lisbon and has a major accountability role on global trade policy.

4 0

3 years ago

Determine the balance in Finished Goods Inventory on October 31 and November 30 under absorption costing and variable costing. C

Morgarella [4.7K]

Answer:Please refer to the explanation section

Explanation:

The question is incomplete, amounts of production costs like Direct Material, direct labour and Variable/Fixed manufacturing overheard were not given, we will explain the absorption cost and variable cost in detail so that the student would be able to calculate absorption cost and variable cost balances easier.

Absorption costing Method

Total Manufacturing costs are allocated to Finished goods Product. Absorption Costing method assigns or allocates the total cost of Manufacturing or total production costs to units of Finished Goods produced. each unit of finished goods thus represents total costs of production per unit or Total Manufacturing/Production cost is the Balance of Finished Goods.

Total Manufacturing/Production cost = direct labor cost + direct material cost + variable and fixed Manufacturing overheads cost.

Finished Goods Balance = Total Manufacturing/Production cost

A unit of Finished Goods = Total Manufacturing costs/units produced

Variable costing method

Variable costing method fixed manufacturing costs are treated as an expense, Variable Manufacturing costs are the only allocated to inventory. The value or Balance of inventory consist of Variable Manufacturing cost like Direct labor, Direct Material and Variable Manufacturing costs. Finished Goods Balance equals total Variable Manufacturing cost

5 0

3 years ago

Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2

Temka [501]

Answer:

1. N = 840.66 RPM

2. 1023 w

Explanation:

See attached images

5 0

3 years ago

A __________ is a type of purchasing contract in which the price of a good or service is tied to the cost of some key input(s) o

Sonbull [250]

Answer:

Cost-based contract

Explanation:

A cost-based contract is tied to various factors which can change the overall price of a good or service. Likewise, the only difference between the cost-based contract and the fixed-price contract is the change in the price during the contract. A price can change in a cost-based contract because of inputs and economic factors such as exchange rate or interest rate.

6 0

4 years ago

Read 2 more answers

A firm is considering the purchase of a $500,000 machine for its business. The machine is expected to increase sales by $237,000

AleksandrR [38]

Answer:

The firm should: ___________

c. Reject the project because the NPV is negative $120,921

Explanation:

a) Data and Calculations:

Pro Forma Income Statement:

Sales $237,000

Total Cost 137,000

Depreciation 100,000

EBIT $0

Taxes 0

Net income $0

Cost of machine = $500,000

Required rate of return = 10%

Annual revenue from new machine = $237,000

Annual operational costs = $137,000

Annual net cash flow = $100,000

Depreciation expense = $100,000

Annuity factor at 10% for 5 years = 3.791

PV Annuity of $100,000 = $100,000 * 3.791 = $379,100

NPV = $379,100 - $500,000 = $120,900

b) The Net present value of the project is $120,900 (the difference between the total present value of cash inflow of $379,100 and the initial cash outflow of $500,000).

8 0

3 years ago