Answer: External failure costs is one of the four major categories of quality costs that is particularly hard to quantify.
Explanation: Quality costs are costs that are associated with giving poor products or services. Since external failures are always changing and hard to clearly identify, it makes them harder to quantify as well.
Answer:
3 years
Explanation:
Calculation to determine The payback period
Using this formula
Payback period=Capital investment/ Increase cash flows
Let plug in the formula
Payback period=$45,000/$15,000
Payback period=3 years
Therefore The payback period is 3 years
Answer:
To minimise cost, the firm should lay off worker and rent more computer as it give more output per dollar invested on it. This reduce the fixed cost of the company drastically and increase the production of the company. The marginal cost of production and marginal revenue are economic parameter, which help to determine the amount of output and price per unit of input that will maximise the profits. The point at which marginal revenue is equal to marginal cost maximise the profit.
Answer:
C) Condensing the firm's cash inflows into fewer years without lowering the total amount of those inflows.
Explanation:
When you determine the net present value of project, the longer the project, the lower the present value of its cash flows. A way to try to increase the NPV of a project is to try to shorten its life span without reducing the value of its cash flows.
This sounds much simpler than it is. Since your project should produce cash flows in a shorter time, you will have to probably shorten the time periods of some activities, e.g. building new facilities, research and development, etc.
Answer:
The correct answer is letter "B": the AICPA.
Explanation:
The American Institute of Certified Public Accountants (<em>AICPA</em>) is the association representing accountants in the United States in charge of ruling practices regarding the accounting profession. Among its functions, we can identify setting the Standards for Tax Services (SSTSs) which is a standard with taxing purposes that all members of the AICPA must follow.