All categories

3 years ago

If we are replacing an old vehicle with a newer model, the cost of the old vehicle is:_______.

Business

1 answer:

slava [35]3 years ago

8 0

Answer:

Option C

It is a sunk cost

Explanation:

The relevant cost of a decision is that that would future cash cash flow that arises as a direct consequence of a taking a decision.

<em>In other words, before a sum is considered relevant to a decision , it must satisfy the following condition:</em>

Future cost : a cots would only be incurred in the future if the decision is taken
It is must involve cash
It must arise as direct consequence of taking the decision

The cost of the old machine is a past or sunk cost. It does not satisfy the three conditions listed above. Hence, it is no relevant because it is a sunk or past cost

You might be interested in

Exercise 10-2 Straight-Line: Amortization of bond discount LO P2 Tano issues bonds with a par value of $180,000 on January 1, 20

Nitella [24]

Answer:

bonds' face value $180,000

coupon rate 8%, semiannual = 4%

maturity 3 years x 2 = 6 periods

market interest rate = 10% or 5% semiannual

the journal entry to record the issuance of the bonds:

January 1, 2017, bonds issued at a discount

Dr Cash 170,862

Dr Discount on bonds payable 9,138

Cr Bonds payable 180,000

the amortization of the bond discount should be $9,138 / 6 = $1,523 on every coupon payment.

Journal entry to record payment of first coupon:

June 30, 2017, first coupon payment

Dr Interest expense 8,723

Cr Cash 7,200

Cr Discount on bonds payable 1,523

6 0

4 years ago

Jason rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20. His fixed costs are $

melisa1 [442]

Answer:

D) 1,500

Explanation:

rent per room =$100 dollars

variable cost= $ 20 dollars

fixed cost =$ 100,000.00

desired profits=$ 20,000.00

volume(V) to meet profit target;

Contribution margin per sale= $100-$20= $80

Profits = revenue-cost

=$20,000= Vx$80-$100,000

=20,000=v80-100000

v80=100,000.00+20,000

v80=120,000

v= 120,000/80

Volume =1,500

8 0

3 years ago

What are three ways that can ensure your message is clear and not misnunderstood?

N76 [4]

Your communication style matches theirs

ask them what they heard. how they might explain it to others

keep your message on one subject. don't confuse the subject with multiple ideas

4 0

3 years ago

Value of Operations Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the

Musya8 [376]

Answer:

Value of Operations Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 10%. The company's weighted average cost of capital is 18%. What is the terminal, or horizon, value of operations

Terminal value = $1,783,333.33

Explanation:

Terminal value = FCF3/(WACC � g2)

FCF3 = FCF2 x 1.07 = $100,000 x 1.07 ? $107,000

= $107,000/(.13 - .07)

Terminal value = $1,783,333.33

8 0

3 years ago

Since global expansion typically means bringing the company's existing products to new markets, it would be considered a _______

velikii [3]

Answer:

<u>Market development.</u>

Explanation:

Market development strategy refers to a strategy used by organizations wishing to expand in the market by identifying and developing new market segments for their product, ie the focus is on gaining new uses and potential new customers. for your products.

For this to be a successful strategy, the marketing manager must consider whether there is a need for product modification or new product insertion, and if there are enough research efforts on sales channel and customer behavior so that This strategy meets the expectations of increased efficiency, market expansion and profitability.

4 0

3 years ago