Answer:
Utilization.
Explanation:
The measure that captures the use of a fixed asset in serving customers relative to the asset's capacity is known as the utilization rate.
This ultimately implies that, a utilization rate measures or estimates the level of output a fixed asset produces relative or in comparison with it's capacity.
Generally, the utilization rate is usually measured in proportions and displayed in percentages so as to gather information about organizational cost structure and operational efficiency.
Answer:
a. Incremental analysis.
b. Sunk cost.
c. Relevant information.
d. Opportunity cost.
e. Joint products.
f. Out-of-pocket cost.
g. Split-off point.
Explanation:
a. Incremental analysis: examination of differences between costs to be incurred and revenue to be earned under different courses of action.
b. Sunk cost: a cost incurred in the past that cannot be changed as a result of future actions. Sunk cost can be defined as a cost or an amount of money that has been spent on something in the past and as such cannot be recovered.
c. Relevant information: costs and revenue that are expected to vary, depending on the course of action decided on. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.
d. Opportunity cost: the benefit foregone by not pursuing an alternative course of action. Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.
e. Joint products: products made from common raw materials and shared production processes.
f. Out-of-pocket cost: a cost yet to be incurred that will require future payment and may vary among alternative courses of action.
g. Split-off point: the point at which manufacturing costs are split equally between ending inventory and cost of goods sold. Thus, it give rise to joint products that emerge from the same raw materials and a shared manufacturing process.
Based on the selling price of the car and the cost to work on it, Savion should sell the car now for $3,800.
<h3>Why should Savion sell the car?</h3><h3 />
The profit if he works on the car is:
= Selling price - Addtional work cost
= 5,800 - 2,400
= $3,400
The profit from selling the car is $3,800 which is more than the profit if additional work is done of $3,400.
The $4,000 is irrelevant as it is a sunk cost.
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The answer is sunk cost
This incurred cost usually could not be recovered in any way.
For example, let's say for the business operation, you make a prepaid rent for a building for the whole year.
In this situation, the prepaid rent could be considered as a sunk cost because it's already incurred and not recoverable anymore
The sponsoring broker should not release the money without a written release from both parties.
If there is any dispute between the parties arises regarding the deposit of Escrow money, the sponsoring broker should not release the money without a written release from both parties or both parties' assigned agents.
In the event a dispute arises over whether or not the earnest cash should be again (for instance, if the seller argues that the purchaser did not notify the seller in a well-timed manner of the cause to return out of the settlement), the escrow holder will hold to keep the earnest money till the dispute is resolved.
The two important factors for a legitimate sale escrow are a binding agreement/agreement between buyer and seller and the conditional shipping to an impartial third party of something of fee, as described, which generally consists of written gadgets of conveyance (provide deed) or encumbrance.
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