Answer:
An investment is acceptable if its AAR exceeds a target AAR.
Explanation:
The average accounting return (AAR) is a capital budgeting decisions method that is obtained by dividing the earnings after taxes and depreciation of an investment project by its average book value during its life.
An arbitrary ARR target is usually set which compared with the calculated ARR.
The decision rule under ARR is that an investment should be accepted if its AAR exceeds the target AAR.
Therefore, The average accounting return (AAR) rule can be best stated as ann investment is acceptable if its AAR exceeds a target AAR.
Answer:
ATC=4
Explanation:
To calculate Average Total Cost,
Start by finding the quantity Q, which is the number of units the company is producing.
Q=10
Average Variable Cost = Variable cost/Qty
10/10=1
Find out the average total cost using the equation. i.e Average Total Cost = Average Fixed Cost (AFC) + Average Variable Cost (AVC)
ATC=AFC+AVC
ATC=3 + 1
ATC=4
Answer: The correct answer is "E. both b and c.".
Explanation: A firm will maximize profit by producing that level of output at which "B. the additional revenue from the last unit sold equals the additional cost of the last unit." (<u>to the point where Marginal Income = Marginal cost</u>). And the "C. total revenue exceeds total cost by the largest amount".
Answer:
Option "A" is the correct answer to the following statement.
Explanation:
In the modern era, everyone relates himself with surveys reports easily, If a speaker uses survey reports during his lectures every individual attracts numerical provided data. this will create a suitable environment for the speaker.
In an immediate environment, the speaker tries to attract individuals by providing them survey reports which authorized his opinion.
Answer:
The correct answer to the following question is $36,000.
Explanation:
Given information -
Units anticipated to be produced - 300,000 units
Variable cost - $150,000
Fixed cost - $600,000
Beginning inventory - 5000 units
Ending inventory - 7000 units
Income under absorption costing - $40,000
Now under the absorption costing, rate of fixed overhead cost per unit -
Fixed cost / Number of units produced
= $600,000 / 300,000
= $2
In April ( under absorption costing ), the amount of fixed manufacturing overhead cost that was still embedded in ending inventory but were not expense -
Fixed overhead rate per unit x number of units produced but not sold
= $2 x 2000 ( 7000 units - 5000 units )
= $4000
So when we calculate the operating cost under variable costing this fixed overhead cost wold be subtracted from total income -
$40,000 - $4000
= $36,000 .