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3 years ago

The total cost analysis demonstrates how other costs besides the unit cost can affect purchase decisions. True False

Business

1 answer:

zvonat [6]3 years ago

8 0

Answer:

That statement is true

Explanation:

In order to conduct a total cost analysis, a company need to calculate every single relevant cost that occurs within an operation or project from start to finish. From this, the company usually can find out about hidden costs that might occurs outside the initial plan.

The decision makers can use this options to make their decision in the future. If the total hidden cost is larger than ideal, they can either implement a new budgeting plan or implement policies that minimize the hidden cost.

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Suppose the economy is currently in long-run equilibrium. The government has just decided to lower income taxes. The long-run im

MariettaO [177]

Answer:

Slower economic growth

Explanation:

Increasing tax rates can generally and obviously discourage

work because corporations will pay more,

savings, because people earn lesser disposable income,

investment, because firms have lesser profit by paying bigger taxes,

Although specific tax adjustments for certain income categories can assist with the reallocation of economic resources.

But in the long-run economic growth will be slowed down by tax cuts because it will increase deficits by lesser funds being generated for the government over time

3 0

2 years ago

H. Cochran Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2,3

MArishka [77]

Answer: If the required return is 11 percent, what is the project's NPV? (Do not round intermediate calculations and round your answer to two decimal places, e.g., 32.16.)

Explanation:

7 0

3 years ago

Read 2 more answers

You have decided to buy a used car. The dealer has offered you two options: (FV of S1, PV of $1, FVA of $1, and PVA of $1) (Use

Pachacha [2.7K]

Answer:

1-a.

in order to determine the present value of option a we can look for the PVIFA (annuity factor) for 24% / 12 = 2% monthly rate and 25 payments.

PVIFA = 19.523

Present value of the 25 payments = $540 x 19.523 = $10,542.42

Present value of final payment = $10,000 / (1 + 24%)²⁵/¹² = $6,388.10

PV = $16,930.52

Present value of option b = $16,638

1-b.

b. option b (lower present value)

5 0

2 years ago

On July 1, Raney Corporation purchases 690 shares of its $4 par value common stock for the treasury at a cash price of $9 per sh

-BARSIC- [3]

Answer:

Date Particular Dr. Cr.

Jul-1 Treasury stock $6,210

Cash $6,210

Sep-1 Cash $4,840

Treasury stock $3,960

Paid-in capital - Treasury stock $880

Explanation:

Treasury stocks are the company's own shares which is repurchased by the company. It is recorded in treasury shares account which is an contra equity account. I can be reissued or cancelled by the company.

Purchase of Treasury Stock

Treasury Stock = 690 x $9 = $6,210

Sales of Treasury Stock

Cash Receipt = 440 x $11 = $3,300

Treasury Stock = 440 x $9 = $3,960

Paid-in capital - Treasury stock = 440 x $2 = $880

5 0

3 years ago

If the expected path of 1-year interest rates over the next five years is 2 percent, 4 percent, 1 percent, 4 percent, and 3 perc

timofeeve [1]

Answer:A) one year

Explanation: The unbiased expectations theory, also known as the expectation theory aims to estimate how much the short term interest rates will amount to in future. This is based on long term interest rates. Forward rates are used to predict the value of interests in the future based on the values calculated today. A maturity of 1 year has the lowest interest rate because it is not given enough time to grow. Interest rates tend to grow better over a longer period of time. Therefore in terms of expectation theory the longer the maturity the better the chances of interest rate growth.

6 0

3 years ago