Answer:
III. The profits that could be earned in another business using the same amount of resources.
Explanation:
Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.
Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.
Hence, the opportunity cost of owning a business is the profits that could be earned in another business using the same amount of resources.
For instance, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invest the same amount of resources in a salon business or any other business as the case may be.
Answer:
$0
Explanation:
There is a provision that if the tax received on the money with respect to the valuation of the property is more than the $14,000 the same is to be taxable
Since there is $14,000 worth so no tax collection could be made on the gift amount
If the gift amount exceeds $14,000 the same is to be taxable
So the gift tax in 2016 would be $0
Answer:
Working capital is ($98.7) in millions
Current ratio is 0.51:1
Explanation:
Working Capital is the difference between current assets and current liabilities. So, $102.5 (in milions) less $202.2 (in millions) equals ($98.7) in millions. This means, the company's short-term obligation exceeds its current asset for the period.
Current ratio also known as liquidity ratio. It measures the company's capacity to pay short-term obligation. To compute current ratio we simply divide current assets over current liabilities.
Current Assets / Current Liabilities
$102,500,000 / $201,200,000
0.509443 or 0.51 : 1
Answer:
<em>Outsourcing </em>
Explanation:
Outsourcing is the <em>business strategy of recruiting an individual or group outside a company to perform services or produce items that the company's own managers and staff have historically done in-house.</em>
It is a method that companies usually take as a value-cutting mechanism. It can also impact a wide variety of jobs, from customer support to manufacturing to back office.
Answer:
The actual manufacturing cost per unit is 23.46
Explanation:
Step 1. Given information.
- Direct material $10.00
- Direct labor $8.00
- Variable overhead $3.00
- Fixed overhead $2.00
- Total standard cost per unit $23.00
- overhead 29.920
Step 2. Formulas needed to solve the exercise.
Actual manufacturing cost per unit
Direct materials = Fixed overhead * price direct material
Direct labor = direct labor * price per hour
cost per unit = Total cost / units sold
Step 3. Calculation.
(+) Direct materials = 12,200*4.80 = 58.560
(+) Direct labor = 5,950*8 = 47.600
(+) Overhead 29.920
Total 136.080
Cost per unit = 136,080/5,800
Cost per unit = 23.46
Step 4. Solution.
The actual manufacturing cost per unit is 23.46