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inysia [295]
4 years ago
13

Fixed costs that relate specifically to one center and are incurred for the sole benefit of that center are Entry field with inc

orrect answer A) indirect fixed costs. B) noncontrollable fixed costs. C) common fixed costs. D) direct fixed costs.
Business
1 answer:
cluponka [151]4 years ago
7 0

Answer:

D) direct fixed costs.

Explanation:

The fixed cost is that cost which does not change with the change in the production level. It remains constant whether production level changes or not.  

There are various types of fixed costs which are shown below:

1. Indirect fixed cost: The indirect fixed cost is those fixed costs that are not related to the product. Examples: administrative salaries, miscellaneous expenses, etc.

2. Non-controllable fixed costs: These costs are those cost which is not controllable by the business organization such as depreciation, taxes, etc.  

3. Common fixed costs: These costs are those cost which is held for more than one department or segment. Examples - salaries expenses, rent expenses, etc

4. Direct fixed costs: This cost is to deal with the product and specially incurred for the particular segment such as direct material, direct labor, etc.  

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Suppose you are going to receive $12,000 per year for five years. The appropriate interest rate is 9 percent. a-1. What is the p
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Answer:

What is the present value of the payments if they are in the form of an ordinary annuity?

Discount all cash flows

12,000/1.09=11,009

12,000/1.09^2=10,100

12,000/1.09^3=9,266

12,000/1.09^4=8,501

12,000/1.09^5=7,799

Add all these discounted cash flows= $46,675 is the present value of ordinary annuity

a-2. What is the present value of the payments if the payments are an annuity due?

In an annuity due payment is made at the beginning of the year so we subtract one from each compounding period so,

12,000/1.09^0=12,000

12,000/1.09=11,009

12,000/1.09^2=10,100

12,000/1.09^3=9,266

12,000/1.09^4=8,501

add all these discounted cash flows = $50,876= PV of annuity due

FV of ordinary annuity

PV= 0

PMT=12,000

I= 9

N= 5

FV=? Put these in financial calculator= $71,816

Fv of annuity due=

12,000+

PV=0

PMT=12,000

I=9

N=4

FV=?=66,877

Pv  of annuity due is higher and FV or ordinary annuity is higher.

Explanation:

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The evidence of debt and personal promise to repay that debt is called
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3 years ago
The solution to the system: -2x + y = -1 ; 10x + 5y = 5 is
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3 years ago
The facility is implementing a new information system that will require conversion of healthcare data. the conversion is:
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4 years ago
The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs
horsena [70]

Answer:

At 12 cases the stein beer should reordered by him.

Explanation:

The reorder level is that level in which the company setup a new manufacturing unit so that they can fulfill the needs of the customers and attains the customer satisfaction as much as they can.

For computing the reorder level of the stein beer, the computation is shown below:

Reorder level = Daily unit sales ×elivery lead time

                       = 4 × 3 d

                       = 12 cases

The other cost like ordering cost, carrying cost or holding cost, per unit cost is irrelevant while computing the reorder point. Therefore, it is not considered in computation part.

Thus, the reorder level is 12 cases

Hence, at 12 cases the stein beer should reordered by him.

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