Answer:
The production cost of the machine is expected to be 13,000
Explanation:
Future research is developing a machine which can generate more sales. The The machine will incur research and development cost. This cost is not considered to be part of producing a machine because research expense is not capitalized. The development expense is capitalized if it meets certain conditions. The machine production cost will be around 13,000. The exact value for production can be lower or more. This is expected production cost of machine.
This is known as PRECOGNITION.
In psychology, precognition is defined as the ability to perceive or see a future event before it happens by means of extrasensory perception. It is considered as a form of extrasensory perception because, it operates without recourse to the normal senses.
Answer: $(60,000)
Explanation:
From the question, we are told that a company reported that its bonds with a par value of $40,000 and a carrying value of $52,000 are retired for $60,000 cash, resulting in a loss of $8,000.
The amount to be reported under cash flows from financing activities will be $60,000. This is the amount from the question that the bonds are retired for.
Answer:
b. use lower-cost materials
Explanation:
In Accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
Production costs can be categorized as;
1. Variable costs: these are costs that usually change with respect to changes in the level of production or output. Examples are direct labor, maintenance of equipment or machines, raw materials costs etc.
2. Fixed costs: these are the costs which are not directly related to the level of production or not affected by the quantity of output in an organization. Examples are rent, depreciation, administrative cost, research and development costs, marketing costs etc.
Some of the ways to accomplish activity cost reduction are;
I. The operations of a business firm should be improved in order to make the activity-base usage per unit to be reduced.
II. The classification of employees doing an activity should be changed so as to decrease the activity rate.
Answer:
The correct answer is A
Explanation:
Computing the effective interest rate per payment period for the payment schedule which is semi- annual interest:
The formula to compute the effective interest rate which is provided by the bonds is as:
Effective rate (semi- annually) = Nominal rate (r) / Compounded quarterly (m)
where
r is 7%
m is 2 (every 6 months)
Putting the values above:
= 7% / 2
= 3.5%
Therefore, 3.5% is the effective annual rate offered by these bonds.
