1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
trasher [3.6K]
3 years ago
8

The cost incurred by a firm through the foregone earnings on capital invested is a(n):

Business
1 answer:
Yuri [45]3 years ago
5 0
The answer is sunk cost
This incurred cost usually could not be recovered in any way.
For example, let's say for the business operation, you make  a prepaid rent for a building for the whole year.
In this situation, the prepaid rent could be considered as a sunk cost because it's already incurred and not recoverable anymore
You might be interested in
Garden Zurich Corp. manufactures garden fountains. It currently has two product lines, the basic and the luxury. Garden Zurich h
wolverine [178]

Answer:

Garden Zurich Corp.

a. Traditional costing system with machine hours as the cost driver:

Overhead rate = $171,500/10,000 = $17.15

Overhead assigned to each product line:

Basic = $85,750 ($17.15 * 5,000)

Luxury = $85,750 ($17.15 * 5,000)

b. Activity rates for each cost pool:

Materials handling = $200 ($14,000/70)

Quality control = $100 ($37,500/375)

Machine maintenance = $120 ($120,000/1,000)

Explanation:

a) Data and Calculations:

Total overhead = $171,500

                             Basic    Luxury

Direct costs         $200      $300

Selling price          500         750

Contribution       $300      $450

Production units   800        500

Activity Cost           Cost Driver  Cost Assigned to Pool  Quantity/Amount  

Pools                                                                              Basic        Luxury

Materials handling Number of moves         $14,000      20           50 moves

Quality control       Number of inspections $37,500   250          125 inspec.

Machine                 Number of machine

maintenance            hours                         $120,000  5,000    5,000 m.hour

Total overhead costs                                  $171,500

4 0
2 years ago
5) Scanlin, Inc. is considering a project that will result in initial aftertax cash savings of $2.1 million at the end of the fi
rewona [7]

Answer:

The PV of future cash flow is $22,925,764, therefore the company should take on the project

Explanation:

In order to know if the company should take on the project we have to calculate the PV of future cash flow as follows:

PV of future cash flow=<u>    D1    </u>

                                        RE-g

To calculate this formula we requre to calculate the WACC and the discount rate as follows:

WACC=(1.00/1.80×0.11)+0+(0.80/1.80×0.046)

WACC=0.0611+0+0.02044

WACC=0.081556

WACC=8.16%

After having calculated the WACC we can calculate the project discount rate as follows:

project discount rate=WACC + Additional risk factor

=8.16%+3%

=11.16%

Therefore, PV of future cash flow= <u>$2,100,000</u>

                                                            0.1116-0.02

PV of future cash flow= <u>$2,100,000</u>

                                            0.0916

PV of future cash flow=$22,925,764

The PV of future cash flow is $22,925,764, therefore the company should take on the project

4 0
3 years ago
When supervisors directly oversee the actions of employees, monitoring employees' work and correcting problems as they occur, __
pickupchik [31]
The answer to this question is <span>concurrent control
Concurrent control refers to the type of control by management in order to make sure that all employees are meeting the required regulations and standard.
This type of control is used to make sure that employees will always meet company's expectation so the company could realize all of its planned goals.

</span>
7 0
3 years ago
On Monday, the regular price of a widget was discounted by 25 percent. On Tuesday, the reduced price was discounted by 50 percen
Anvisha [2.4K]

Answer:

<u>The Regular Price was $112.50</u>

Explanation:

On Monday- Discounted -25% from original price

On Tuesday- Discounted -50% from the price from "Monday"

I am going to multiply

60 x 0.25 = $15

$15 was discounted from the original price so you should add it to 60

the price is 75 now. Next

We need to multiply 75 x 0.50 = $ 37.5

We do the same and add $37.5 to $75

Which equals = $112.5

<u>The Regular Price was $112.50</u>

Ask Me any questions in the comments so i can clarify myself.

Cheers!

3 0
3 years ago
In response to a shortage caused by the imposition of a binding price ceiling on a market,
Margaret [11]

In response to a shortage caused by the imposition of a binding price ceiling on a market,

a. price will no longer be the mechanism that rations scarce resources.

b. long lines of buyers may develop.

c. sellers could ration the good or service according to their own personal biases.

A binding price ceiling is when the government or an agency of the government sets the maximum price of a good or service below the equilibrium price.

When price of a good is set below the equilibrium price of the good, the producer surplus would decreases and the consumer surplus would increase. This would lead to an excess of demand over supply. As a result, a shortage would occur. As a result of the shortage, black markets would occur.

To learn more about a price ceiling, please check: brainly.com/question/24312330

6 0
2 years ago
Other questions:
  • Which term describes judging an individual based on the group to which they belong?
    9·2 answers
  • When determining the cost of a manufactured good under an operation-costing system, a company would:
    10·1 answer
  • Which of the following is most representative of the functional finance view of the macroeconomy? The economy is self-regulating
    9·1 answer
  • How did Apple become successful?
    13·1 answer
  • Suppose that velocity is 3 and the money supply is $600 million. According to the quantity theory of money, nominal output equal
    12·1 answer
  • Suppose that a government that is skeptical of efforts to regulate prices charged by private companies is nevertheless concerned
    7·1 answer
  • A cartel differs from a monopoly in that
    12·1 answer
  • You are interested in purchasing a digital camera and find one priced extremely low. As you are about to purchase the camera, yo
    6·1 answer
  • During the taking of its physical inventory on December 31, Barry's Bike Shop incorrectly counted its inventory as $222,138.00 i
    14·1 answer
  • Some checking accounts require a minimum amount of money in the account or they charge point monthly fees?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!