A is the primary determinant of consumption and is usually measured in terms of current disposable income .
Answer: $16,000
Explanation:
The Outsider's Point of View is also known as The OPPORTUNITY COST APPROACH.
This as you may know, refers to the cost associated with choosing an alternative over others.
In this scenario, the company owns the 5 year old turret lathe so the Opportunity Cost must be the cost of still owning it.
Since this is the case then the first cost of owning the Lathe is simply the Market Value of the Lathe at the moment.
This is $16,000.
$16,000 therefore is the First Cost of keeping the Old Lathe
Answer: True
Explanation:
Projects are carried out with the consideration that risk would definitely occur, and during the analysing phase of any project all risk that would evolve are carefully studied and proactive solutions are provided. When starting projects there is definitely a high risk due to the energy of how the work would go but careful implementation helps curb the situation.
Answer: $18,000
Explanation:
Interest from municipal bonds is tax free and will therefore result in a permanent difference along with the premium on officers' insurance.
Temporary difference will arise from the estimated future warranty costs to be paid in Year 2 and 3 and this will be a tax benefit because they will only be recognized in Year 2 and 3 but have already been recognized by the tax authority:
= 60,000 * 30%
= $18,000
I just finished this quiz, and the answer is "Price fixing", I hope this helps :)
