Answer:
The decision to give up visiting popular Ouro Preto. (i think! :))
Explanation:
Opportunity cost is the profit lost when one choice is chosen over different. The idea is valuable only as a suggestion to consider all logical choices before making a judgment. If economists regard to the “opportunity cost” of a support, they indicate the importance of the next-highest-valued alternative use of that support.
Answer:
<u><em>$27,000</em></u>
Explanation:
<em>8% interest rate</em> on loan implies;
8/100 x $150,000 = $12,000
Making total payment at end of six years=
$12,000 + $150,000= $162,000
The annual payment now equals;
$162,000/6= $27,000
Note that the term annual payment means an equal amount of money to be paid yearly, which if <em>summed up </em>together would repay the loan amount when the repayment period ends
Answer:
The lump-sum is better.
Explanation:
It depends on the interest rate. In this case, the lump-sum is the better option.
Answer:
c. donee beneficiary
Explanation:
A donee beneficiary is that person who will receive the amounts indicated in the insurance policy. For this reason, we can conclude that Professor Dought's mother is a donee beneficiary, because Professor Dought's life insurance indicates that she must receive the money indicated in the insurance policy if Professor Dough dies.
Answer:
Option D is correct
Under costed by $53.76
Explanation:
Using activity based costing, the job would be costed using the different cost driver rates as provided in the question.
Overheads allocated= (12× 22) + (32×3)= 360
Using traditional costing system, the overhead would be charged using direct labor hours only.
Total overheads = (100,000 × 12) + (6000 × 32) =1,392,000
Predetermined overhead absorption rate
= 1,392,000/100,000 labour hours
=$13.92 per hour
Allocated overheads= OAR × labour hours required
= $13.92 × 22 =306.24
Using traditional costing, the job would be under costed by
= 360 - 306.24
=$53.76