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3 years ago

A sunk cost is one that _______ Select one:

Business

1 answer:

Minchanka [31]3 years ago

7 0

Answer:

The correct answer is option b.

Explanation:

Sunk costs refers to historical funds spent or incurred that cannot be recovered. Such costs are considered irrelevant during decision making which impacts on the business's future as they present no influence on present or future prospects.

<u>Example</u>

ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.

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Swifty Company incurred the following costs during the year: direct materials $24.40 per unit; direct labor $13.10 per unit; var

DerKrebs [107]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Swifty Company incurred the following costs during the year: Direct materials $24.40 per unit

Direct labor $13.10 per unit

Variable manufacturing overhead $16.00 per unit

Variable selling and administrative costs $11.00 per unit

Fixed manufacturing overhead $132,000

Fixed selling and administrative costs $12,000.

Swifty produced 6,600 units and sold 6000 units.

A) Absorption costing= direct material + direct labor + variable overhead + fixed overhead

Absorption costing= 24.4 + 13.1 + 16 + (132,000/6,600)= $73.5

B) Variable costing= direct material + direct labor + variable overhead + Variable selling and administrative costs

Variable costing= 24.4 + 13.1 + 16 + 11= $64.5

4 0

3 years ago

Achieving the goal of price stability with low and steady inflation allows the Fed to achieve other goals, such as stable inter

ioda

Answer:

The correct answer is D. Because the nominal interest rate includes an inflation premium.

Explanation:

If the prices of many of the items we buy go up, we lose purchasing power. In other words, with the money we have - income and savings - we cannot buy as much as before. This can trigger an upward spiral of prices. If everything becomes more expensive, we may have to request a salary increase from our company. To finance the increase in staff salaries, the company could react by raising its prices. If this happens in many companies, the prices of many items will rise more, which will feed the spiral. This situation makes planning savings and investments more difficult for individuals and businesses. In the face of a rapid loss of value, the public can lose confidence in the currency. These are just a few examples of the negative effects of high inflation rates.

8 0

3 years ago

Which one of the following best describes a work center?

galina1969 [7]

Answer: (C) A location where value-added work needed to produce a material is carried out.

Explanation:

A work center is the type of location in which the work are carried out for producing various types of materials.

Work center is one of the type organization in which the various types of production activities are get performed.

Work center is also the type of resource which can be used for various types of multiple purpose. It is basically responsible for completing various types of operations within the production line.

Therefore, Option (C) is correct.

8 0

4 years ago

Knappert Corporation makes one product and has provided the following information:

Alex_Xolod [135]

Answer:

$113.0

Explanation:

A. Cost of material (M):

$M=3*5.00\\M=\$15.00\ per\ unit$

B. Cost of Labor (L):

$L=24*2.80\\L=\$67.20\ per\ unit$

C. Manufacturing overhead (O):

$O=11*2.80\\O=\$30.80\ per\ unit$

D. Selling and administrative expense (S):

Those should not be included in the product cost.

Total cost per unit is:

$U = M+L+O= 15.00+67.20+30.80\\U=\$113.00$

The unit product cost is closest to: $113.00.

3 0

3 years ago

Under Part F of the Personal Auto Policy, which of the following is correct when there are two or more auto policies issued by t

kirza4 [7]

Answer:

C This policy will be excess if the other policy is in a different insurer.

Explanation:

Concurrent Insurance is a situation where there are more than one insurance policy for same risk. This is insurance policy which is usually with one primary policy covering the basic loss and then there is secondary policy which provides the excess loss coverage. There can be some clauses in the policy which will define the extend of the loss coverage. This is suitable for business with significant risks. Here also in the question there are two insurance policies for a personal auto.

5 0

3 years ago