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3 years ago

Why might prevention costs be referred to as an investment while failure costs might be referred to as true costs

Business

1 answer:

sdas [7]3 years ago

4 0

Answer: Prevention cost is used to protect equipments and assets and as such is an investment.

Explanation:

Prevention cost like the name suggests is a cost incurred in the process of keeping a machine or equipment in a working condition to avoid a future breakdown which might lead to a loss in profit for the company. This is why it is referred to as an investment because it is done to prevent the loss of profit due to downtime a breakdow of the machine or equipment would cause.

Failure cost is a true cost because it arises from a loss incurred by the company through production or it capital invested in the business.

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EmployIT is a newly established recruitment company. It does not have adequate funds to rent out an office space for its employe

Semenov [28]

Answer:

This scenario illustrates that the employees are part of a virtual team

Explanation:

Virtual organizations are firms set up to address the issues of space and time shifts.

Space shift is the traditional arrangement where employees are meant to be located in one single location in order to effectively function together as teams.

Time shift is the timing barrier where employees are expected to liaise with one another at the same time.

Virtual organization is a break from the norm by ensuring individuals that are geographically dispersed and operating in different time zones function together as a team with the aid of advancement in technology.

4 0

3 years ago

The board of commissioners of the city of Jarmaine adopted a General fund budget for the year ending June 30, 2018, which indica

Oksi-84 [34.3K]

A. General journal

Dr Estimated Revenues Control 1,300,000 Dr Estimated Other Financing Sources - Bond Proceeds 520,000

Cr Appropriations Control 1,170,000

Cr Appropriations - Other Financing Uses - Operating Transfers Out 390,000

Cr (Budgetary) Fund Balance 260,000

B. General Journal

Dr Appropriation Control 1,170,0000

Dr Appropriations - Other Financing Uses - Operating Transfers Out 390,000

Dr (Budgetary) Fund Balance 260,000

Cr Estimated Revenues Cr Control 1,300,000

Cr Estimated Other Financing Sources - Bond Proceeds 520,000

Budgetary Fund balance workings

1,300,000-1,170,000= 130,000

520,000- 390,000= 130,000

130,000+130,000= 260,000

6 0

3 years ago

When writing a cover letter, which of the following salutations should be used?

miskamm [114]

Answer:

The correct option is B

Explanation:

The salutation is the greeting which is to be mentioned at the starting of the cover letter, and it is involved in a resume, when the person is applying for a job. When the person is writing a cover letter or either sending a email message in order to apply for the job.

It is vital to involve a right as well as an appropriate greeting at the starting so that set the tone for the letter, that is should be appropriate as well as professional.

The salutation or the greeting which is to be used when writing the cover letter is Dear the name of the employer or the person (for example, Dear Mr Jones, Mr Brown).

6 0

4 years ago

Read 2 more answers

A company has a margin of safety of 25%, a contribution margin ratio of 30%, and sales of $1,000,000. Required: a. What is the b

ruslelena [56]

Answer:

a. $750,000

b. $75,000

c. $33,000

Explanation:

We know that,

a. Margin of safety = Expected sales - break even sales

$1,000,000 × 25% = $1,000,000 - break even sales

$250,000 = $1,000,000 - break even sales

So, the break even sales = $750,000

b. Operating income = Contribution margin - fixed cost

where,

Contribution margin = $1,000,000 × 30% = $300,000

And, the fixed cost = $750,000 - $750,000 × 70%

= $750,000 - $525,000

= $225,000

Or we can do one thing also

Break even point = Fixed cost ÷ contribution margin ratio

$750,000 = Fixed cost ÷ 30%

So, the fixed cost is $225,000

Now put these values to the above formula

So, the value would equal to

= $300,000 - $225,000

= $75,000

c. Additional operating income would be

= $110,000 × 30%

= $33,000

8 0

3 years ago

Becky's department has seen a number of layoffs in the last two months, and employee morale is very low. This is affecting the w

vovikov84 [41]

Answer:

I believe the answer is Influence.

Explanation:

7 0

4 years ago