A variable cost is a corporate expenditure that fluctuates in proportion with manufacture output. Variable costs increase or decrease reliant on a company's manufacture volume; they rise as manufacture increases and fall as manufacture decreases.
Cost equation y = vx + f
$500,000 = 125,000x + 240,000
260,000 = 125,000x
$2.08 = x
Answer:
If you would like to start a company with decentralized decision making regarding day-to-day operations, but a central body of managers provides help with branding, training, and even resources and help to set up and operate the business, you might BEST consider A decentralized management structure.
Explanation:
A decentralized management structure is one in which decision-making authority is delegated to the lower level throughout the organization rather than limiting it to a few top executives. Under a strong decentralized organization, the lower level managers and employees have power to make decisions.
With this management structure in place, there is:
- Increased expertise at each division,
- Faster turnaround time in decision making
- Time and cost effectiveness for top level management
- Increased motivation due to mass participation.
Answer:
Option B
Explanation:
Depreciation refers to an accounting tradition that enables a firm to compose off the worth of an asset throughout an amount of time, generally the beneficial life of the investment.
Assets like equipment and appliances are costly. Instead of recognizing the asset's full cost in the first year one, depreciating the asset helps businesses to distribute the burden and generate income from it.
Thus, depreciation relates to decrease in value of an asset so that expenses can be recorded efficiently and revenue could be computed as per the periods. Therefore, the method of depreciation should be chosen as per its revenue contribution to the entity using it.
Assets - (liabilities + equity)
<em>Hope this helps!</em>
Answer:
B. Complementors
Explanation:
According to Porter, there are 5 forces that affect firms from the competitive environment. They include:
1. Threat from new entrants/competition
2. Threat from existing competition
3. Power of suppliers
4. Power of buyers/customer
5. Threat of substitute product.
In this case, as it can be clearly seen, complementors isn't part of the threat listed out by porter five forces framework.
