Answer:
sunk cost.
Explanation:
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. Thus, because a sunk cost has been incurred by an individual or organization it can't be recovered and as such it is irrelevant in the decision-making process such as investments, projects etc.
Basically, sunk costs are referred to as fixed costs.
Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.
Hence, a cost incurred in the past that is not relevant to any current decision is classified as a sunk cost.
For example, ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.
Answer: -0.36%
Explanation:
The actual real after tax rate of return on an investment is calculated simply by taking the after-tax return and subtracting the inflation rate.
For our question then the equation would look something like this,
= (0.04 x (1- (0.28+0.06)) - 0.03
The equation shows how first we adjust the rate for taxes (after - tax return) and then subtract the inflation rate.
= (0.04 x (1- (0.28+0.06)) - 0.03
= -0.0036
= -0.36%
The investor's actual real after tax rate of return is therefore -0.36%.
If you need any clarification please feel free to comment or react.
Answer:
*Expected sales units= 20% of next quarter's unit sales
*Estimated first quarter 2018 sales units : 210000+(210000*10%) =231,000 : 231000*20%
*Beginning inventory for first quarter = 20% of estimated first qurter's sale = 210000*20%= 42000
Explanation:
* desired ending direct material for qtr 4 = 499000*10% =49900
* beginning direct material for qtr-1 = 436000*10% =43600
6.2% * 165000= 10230
1.45%* 165000= 2392.5
add it up 10230+2392.5 = 12622.50 is how much they will pay
social security is taxed at 6.5 percent and medicare is taxed at 1.45 percent. this is standard. it will always be that number unless the government changes it.