B. That is duplicated reach
Answer:
Explanation:
The net book value of the property(land and building) at the end of year 2
Building(89,000 + 7,000 + 16,000) 112,000
Less; Depreciation for 2 years(10,200*2) (20,400) 91,600
Land(107,000 + 3,000) 110,000
Net book value of property 201,600
A family owned business will consider the budget, profit, goal of the business, status of the business, among others. Although this business might have a difficulty considering the welfare of their employees when deciding an important deal. They will have a difficulty empathizing with their employees since they are more focus on their business than their people.
So in this case, you would need to find the present value (PV) of the monthly payments. With the information given, you would have a PV= 195,413.08, which is less than the lump sum payment. In this case, you would take the 1 time payment.
Another way to look at this is to calculate the future value (FV) of both payouts. For the lump sum payment, you would assume the same interest rate (6%) and at the end of the same 20 years period, your investment would be worth 662,040.90 while the monthly payment option would be worth 646,857.25
Answer:
The fixed overhead cost that can be eliminated if the bowls are purchased from an outside supplier is a relevant cost. The variable selling cost of the snack is also a relevant cost.
The correct answer is A
Explanation:
Relevant costs are costs that relate to future decisions. All variable costs are relevant for decision-making. Eliminated fixed overhead are also relevant for decision-making.
