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tigry1 [53]
3 years ago
7

A severe cyclone causes substantial damage to a brick manufacturing company's production equipment. As a result, the company spe

nds a sum of $25,000 to repair the equipment. Given this information, the sum of $25,000 that the company spends is its _____.
A. implicit cost.
B. direct cost.
C. explicit cost.
D. indirect cost.
Business
1 answer:
Zepler [3.9K]3 years ago
6 0

Answer:

The correct answer is D. indirect cost.

Explanation:

That is, indirect costs are those costs that the company incurs during the exercise of its activity, whose allocation is more complicated, since they are not directly related to production.

In the above case, it is shown that the environmental effect produced by the cyclone is not directly related to the production of the bricks, so it is considered that it corresponds to indirect costs of the operation.

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What should you always do before choosing a final business name?
Luba_88 [7]

Answer:

B ) See if the domain name is available.

Explanation:

Currently, it is really important that a business has a presence on the web and because of that before choosing a final name for a new company you have to make sure that the domain name is available as this is the name of the website and if it is not available you won't be able to create your page with the right name.

7 0
3 years ago
Sun County Airline is a low-cost carrier that operates 70 routes, primarily between leisure destinations in the United States, M
elena-s [515]

Answer: C.  Focused Cost Leadership

Explanation:

Focused cost leadership happens when a company tries to focus on one part of the market such that it is able to take advantages of the unique opportunities offered there to offer the lowest prices to that specific part of the market.

Sun County Airlines is focusing on leisure destinations and yet offering it at low cost. It is therefore trying to focus specifically on that market whilst offering the lowest price which makes this a focused cost leadership strategy.

4 0
3 years ago
During March, the production department of a process operations system completed and transferred to finished goods 25,000 units
stira [4]

Answer:

transferred-out units 135,000

Explanation:

During March

from the beginning inventory 25,000 were complete

also 110,000 units were started and complete

Total units transferred-out:

25,000 + 110,000 = 135,000

The percent of completion on complete units is always 100%

<u>We don't have to calculate any equivalent units. </u>

Also the ending inventory is not relevant, because we are asked for the transferred out and we are given with the complete units and the started and complete.

5 0
3 years ago
Shopping online allows customers to compare prices of many goods and services. This technology will likely:
Murljashka [212]

Answer: d. cause businesses to increase their focus on nonprice aspects of their promotional message.

Explanation: The internet has made it possible for shopping to be done online. Businesses will most likely increase their focus on nonprice aspects of their promotional message as a result of the technology. This would be largely due to an increase in price competition as more and more consumers have instant access to prices from all around the world and in response to this, nonprice competition is more likely to be on the rise.

4 0
3 years ago
Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, an
levacccp [35]

Answer:

Cerry Blossom Product Inc

the break-even quantity =   Fixed cost / contribution margin

contribution margin on the other hand is  sales price minus variable cost

             compoutation of contribution margin

                                               DVD             Equipment

                                                 $                        $

Price                                        11                        15

variable cost                        <u>   4   </u>                 <u>     7</u>

                                            <u>    7     </u>              <u>      8</u>

unit sold                             18,000                 4,500

sales ratio                               4                        1

weigheted average contribution margin =  ($7*4)   + ($8*1)

                                                                               4 + 1

                                                                  =    $36/5

                                                                  =  $7.2

Overall break-even quantity =   $84,000/$7.2

                                              =   11,667

Break-even unit :

DVD   =   (4  * 11,667)/ 5

         =    9,334units

Equipment sets =  ( 1 * 11,667)/5

                          =   2,333 units

Explanation:

this question is on multi- products.

The overall break-even quantity of the firm will be computed first using the weighted average contribution margin of the firm and common fixed cost.

The break-even quantity will later be divided between the two product based on their  sales ratio.

8 0
3 years ago
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