C. Operating costs.
When you are in business and running it, you need funds to keep it operating.
Answer:
500,000 units
Explanation:
Since the demand is likely to be 500,000 units, the master budget capacity utilization level for this budget period will be limited to 500,000 units. The master-budget capacity utilization level is the level of capacity utilization that managers expect for the current budget period.
Answer:
C. moral hazard.
Explanation:
Moral hazard -
It is the condition , where the person take more risk , as he or she is aware that someone else need to bear the risk , is known as moral hazard .
In this case , one of the party can change the damage of other after any type of monetary transaction has occurred .
Hence , from the question ,
The statement given in the question , is about Moral hazard .
Answer:
$162,500
Explanation:
Depletion is used to expense the cost of extracting natural resources.
Depletion expense = (unit extracted in 2017 / total units that could be extracted) x (Cost- salvage value)
(1,500,000 / 12,000,000) x ( $1,500,000 - $200,000) = 0.125 × 1,300,000 = $162,500
I hope my answer helps you
