Answer:
True
Explanation:
Data provided in the question:
Purchasing cost of the machine = $21,000
Income generated = $2,000
Annual net cash flows from the machine = $3,500
Now,
The Payback period = [ Purchasing cost ] ÷ [ Annual net cash flows ]
or
Payback period = $21,000 ÷ $3,500
or
Payback period = 6 years
Since,
the calculated payback period and the mentioned payback period in the question are equal
Hence,
the given statement is true
Answer:
A,B,D,E are cost which should NOT be expensed when incurred. While C is a cost which should BE expensed when incurred.
Explanation:
(a) $13,000 paid to rearrange and reinstall machinery. select an option. NO
(b) $200,000 paid for addition to building. select an option. NO
(c) $200 paid for tune-up and oil change on delivery truck. select an option. YES
(d) $7,000 paid to replace a wooden floor with a concrete floor. select an option. NO
(e) $2,000 paid for a major overhaul on a truck, which extends the useful life. NO
Therefore A,B,D,E are cost which should NOT be expensed when incurred. While C is a cost which should BE expensed when incurred.
Answer:
(B) $5,000 favorable.
Explanation:
Variable cost flexible budget variance:
budget for 6,000 units total variable cost: $180,000
We divide the total cost by the activity in that budget:
$180,000/ 6,000 = 30
Now we multiply by the actual volume:
5,000 x 30 = 150,000
Now we do flexible budget - actual cost = variance
150,000 - 145,000 = 5,000 favorable
It is favorable, as the cost where less than expected.
Answer:
$575.82.
Explanation:
Since Thomas owes $ 438 on his credit card, but only paid the minimum of $ 20, his debt is now $ 418 (438 - 20). A late fee of $ 39 will be added to this value, which will raise said sum to $ 457 (418 + 39). In turn, the interest rate for unpaid card balances is 26% per month. Therefore, next month his balance will be $ 575.82 (457 x 1.26).
Answer:
A) price will increase and quantity increase.
Explanation:
An increase in demand means more customers are willing and can afford to buy a product. Holding the other factors constant, an increase in demand results in many potential buyers chasing very few goods. The competition for the few goods leads to an increase in their prices. The equilibrium point moves up the graph to a new higher position as a result of an increase in demand.
As per the law of supply, quantity supplied increases as prices rise. Profit motives drive all business establishments. As prices increase due to increased demand, suppliers will be motivated to supply more to take advantage of high prices.
