Answer:
The Concept of Opportunity Cost
Explanation:
An opportunity cost is the cost associated with choosing to enjoy a particular benefit or pursue a particular venture at the expense of enjoying the benefit of its best alternate choice. In other words, when you enjoy the benefits of action A, the opportunity cost is the potential benefit of action B that one had to give up to achieve action A.
According to the question, money and resources devoted to war on terrorism represents the choice of the nation and the benefits maybe that the country is free from terrorist attacks. However, the opportunity cost is that the benefit of freedom from terrorist attacks comes at the expense of goods that could have been produced if the country should choose to pursue production of goods.
The invalid score is 300 because the lower, the worse.
Answer:
C. A recovery of the amount originally invested in the asset
Explanation:
The annual depreciation expense is a non-cash expense and shown in the debit side of the income statement plus it is get added in the net income in the operating activities section of the cash flow statement
While computing return on average investment, the annual depreciation expense recover the invested amount of the asset
Hence, all other options are wrong except c.
Answer:
D. 460 ft^2
Explanation:
Given That:
Cost of Equipment Purchased = $ 1400
useful life = 3 years
recovery rate of equipment =10%
Materials & Supplies cost ( Variable cost) = $ 2.03 / Sq.ft
If the Work is alternatively taken care (hired) by the contractor
Amount payable to contractor for the job ( variable cost ) = $ 3.25 / Sq.ft
Now;
Savings in Variable cost due to purchase of Equipment ( $ 3.25 - $ 2.03) = $ 1.22
Equipment cost to be recovered per year = Cost of Equipment / PVAF ( r%, n years)
= $ 1,400 / PVAF ( 10%, 3years)
= $ 1,400 / 2.49
= $ 562.25
Minimum usage required = Cost of equipment to be recovered per year / Savings in variable
= $ 562.25 / $ 1.22
= 460.85
Minimum usage to be worth for purchasing equipment = 460 ft²
