That statement is true
The statement above is considered as one of the most crucial steps to make inquiry responses.
Placing things in order for the bullets or numbered list will make the inquiry response more presentable and easier to consume by the readers
Answer: (A) Computer service expenses of production scheduling for operating departments
Explanation:
The computer services expenses of the production scheduling is one of the type of indirect expenses and also the type of service department expenses type in the operating department.
The indirect expenses is one of the type of expenses that cannot be directly contribute with the cost object or services in the business department expenses.
According to the given question, the computer service expenses is one of the allocation basis that is used as the indirect expenses in an organization or firm and the indirect expenses are categorized into two main parts that is:
1) Fixed
2) Recurring
Therefore Option (A) is correct answer.
Answer:
B. more than zero if no products were made and would then increase in direct proportion to output
Explanation:
Semi-fixed Cost will be "more than zero if no products were made and would then increase in direct proportion to output."
This is because a semi-fixed cost also known as semi-variable cost or mixed cost is a combination of both a fixed factor and a variable factor.
Such that if production was zero some costs would still be incurred. However, as output rises, the variable part of the costs will rise in direct proportion to output.
Answer:
e. None of them
The company will be $102,000 better off over the 5 year period if it replaces the old equipment
Explanation:
The computation of given question is shown below:-
Net purchase value = New machine cost - Market value
= $100,000 - $12,000
= $88,000
Net operating expenses = Sales revenue - operating expenses × Years
= $10,000 - $18,000 × 5
= -$8,000 × 5
= -$40,000
Total expenses = Net purchase value - Net operating expenses
= $88,000 - $40,000
= $48,000
Old machine operating cost = operating expenses associated with the old machines × Years
= $30,000 × 5
=$150,000
Better off over old machine if new machine is installed = Total expenses - Old machine operating cost
= $48,000 - $150,000
= $102,000
The company will be $102,000 better off over the 5 year period if it replaces the old equipment.