Answer:
b. continuous budgeting
Explanation:
Continuous budgeting (sometimes referred to as rolling budgeting) involves continually adding an additional month to the end of a multi-period budget as each month goes by.
The continuous budgeting concept is usually applied to a twelve-month budget, so there is always a full year budget in place.
Answer: the correct answer is A. Turn multiple negative cash flows into a single negative cash flow by summing all negative cash flows over the project's lifetime.
Explanation: MIRR stands for Modified Internal rate of return. If you add up all negative cash flows in just one you are not taking into account a very important variable which is "time". It is not the same if you have a negative cash flow in 2 years than in 5 years.
Answer:
b. exit barriers are high
Explanation:
Declining industries are those industries wherein the industry has saturated and experiences a negative growth. The characteristic of such industries being the products are lesser in demand.
For instance, cassettes and magnetic tapes industry was in demand until the arrival of more advanced forms such as compact discs and usbs, post which those industries turned into declining industries.
A declining industry with high barriers to exit would experience a greater competition since the barriers would encourage competition instead of withdrawal. And with higher costs of withdrawal, the firms continue producing at negative growth.
Answer:
Contribution margin per unit = $180
Explanation:
The contribution margin per unit is the amount that each unit contributes towards covering the fixed costs of the company after the variable cost of each unit has been covered. It is calculated by deducting the variable cost per unit from the selling price per unit.
Contribution margin per unit = Selling price per unit - Variable cost per unit
Contribution margin per unit = 450 - 270
Contribution margin per unit = $180
Answer:
<h2>The Average cost usually decreases as the output expands.Hence,the answer in this case would be option c. or will always decrease as output expands.</h2>
Explanation:
- Fixed costs or expenses of production refers to those that are fixed or constant through out the production process or does not depend on the changes or adjustments in the actual output or production level.
- Some of the common examples of fixed cost of production include building rent,utility bills,land rent,insurance and interest payments.Note that these costs and expenses are fixed and unchanged and any firm or company has to pay them regardless of the production or output level.
- Now,since the average fixed cost of production is calculated by dividing the total fixed cost of production by the quantity of output produced by the firm at any particular period of time,the average fixed cost of production will decrease.As the output expands the denominator of the average fixed cost formula will increase but note that the numerator of the formula or the total fixed cost of production will always remain constant.Therefore,the average cost of production keeps decreasing with an increase in output or production level,signifying economies of scale.
