Answer:
B) Product departmentalization
Explanation:
Ballooshu is using product departmentalization because it is dividing the company according to product lines.
As a diarly cooperative, management probably believes that the most efficient form of organization is according to the products that it makes.
The cheese department will focus on producing cheese, the ice cream department will focus on making ice cream, the milk department will focus on the production of milk, and so on.
Answer:
$405,000
Explanation:
The calculation of total amount is shown below:-
If the company disposes of the equipment to buy the new equipment, the sunk cost will be the old equipment's book value.
Sunk cost = Book value of the old Equipment
Sunk cost = Cost of equipment - Accumulated Depreciation
= $550,000 - $145,000
= $405,000
Therefore for computing the sunk cost we simply deduct the accumulated Depreciation from cost of equipment
Answer:
The solvency ratio is closest to: B. 33%.
Explanation:
<em>The solvency ratio = After tax Net Operating Income ÷ Total Debt</em>
Thus,
The solvency ratio = $75,000 ÷ ($15,000 + $200,000)
= 35.88%
Therefore this is closest to B. 33%.
Answer:
OPTION D: Direct Labor and Direct Material
Explanation:
Prime cost of a product is defined as the direct costs of producing a product including direct material costs and direct labor costs. Any other manufacturing overheads, indirect expenses and indirect materials/labor cost are not included in the calculation of PRIME COSTS
.
Prime Cost = Direct Material Cost + Direct Labor Cost
Therefore, OPTION D: direct Labor and direct materials is the correct definition of prime costs.