Answer:
Has an opportunity cost
- Having a "lazy afternoon" VS Working an 8 hour shift VS
- Cooking dinner VS Eating out
- Reading you favorite book VS Catching up with an old friend
Explanation:
Opportunity costs refer to the extra costs or benefits lost associated with choosing one activity or investment over another alternative. In other words, every activity that you carry out includes the opportunity cost of not doing something else. No matter what we do, we could be doing something else.
Answer:
$102,240
Explanation:
List price $94,000
Less list price credit term(2%×$94,000)$1,880
Balance $92,120
Add: Discount period $7,800
Delivery charges $940
Labor cost $1,380
Total cost $102,240
Therefore the total cost of Hunter's equipment is $102,240
Answer: 1 widget per dollar
Explanation:
The weekly productivity level for this operation will be calculated thus:
Output = 8000 widgets per week.
Input = Labor Cost + Material Cost
= (5 × 40 × $15) + (100 × $50)
= $3000 + $5000
= $8000
Productivity = Output / Input
= $8000 / $8000
= 1 widget per dollar
Answer:
False
Explanation:
Ordering costs are the costs incurred when materials are requested for. These components of this cost are:- 1)Clerical and administrative costs involved in purchasing and accounting for the goods ordered.
2)Cost of transportation
3)Retooling cost: This happens when the product is manufactured internally. Retooling means change of working tools.
4)Insurance while in transit.
5)Drivers' salaries and allowances
6)Loss of materials while in transit.
7)Taxes, custom duties and import duties.
