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3 years ago

If output equals a*(5k + 2l), what is output if a equals 2,000, capital equals 10, and labor equals 100?

1 answer:

5 0

We know that: a = 2,000, c = 10, l = 100
The formula is: a * ( 5 c + 2l )
So when we charge the values:
2,000 * ( 5 * 10 + 2 * 100 ) =
= 2,000 * ( 50 + 200 ) =
= 2,000 * 250 = 500,000
Answer: The output is 500,000.

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The process by which management plans, evaluates, and controls investments in fixed assets is called capital investment analysis

rjkz [21]

Answer:

a. True

Explanation:

The process by which management plans, evaluates, and controls investments in fixed assets is called capital investment analysis. This process is also known as capital budgeting.

Generally, capital investment analysis or capital budgeting is used by business firms or governmental agencies to assess and measure the profitability of a long-term investment on a fixed asset such as real estate, machinery or factory equipments etc.

Hence, the management is able to choose the best option for investment after an assessment of which investment would yield a higher level of profits.

8 0

3 years ago

Riggs Company purchases sails and produces sailboats. It currently produces 1,300 sailboats per year, operating at normal capaci

mr_godi [17]

Answer:

The president of Riggs has missed something.

She should make the Sail instead of buying because its cheaper to manufacture than purchasing it outside.

Explanation:

Cost of Manufacturing the Sails:

Direct materials $93

Direct Labor $83

Total $173

The president of Riggs has included the $90 overhead based on $78,000 of annual fixed overhead that is allocated using normal capacity in the cost of manufacturing the sail which is incorrect.

Riggs Company is operating at 80 % of full capacity, hence utelizing the 20% excess capacity would not expand its fixed costs.

Thus said the current fixed cost are irrelevent for this decison and would be incurred whether or not Riggs Company utilizes the excess capacity

Conclusion:

The cost of making the sail is $173 which is lower than the cost of buying them at $ 258.

I would advise The president of Riggs to make the sail by utilizing the excess capacity since its cheaper than purchasing it outside.

5 0

3 years ago

Read 2 more answers

For each situation, prepare the appropriate journal entry for the redemption of the bonds.

Arada [10]

Answer and Explanation:

The journal entries are given below:

On Apr. 30

Bonds payable $124,000

Loss on redemption of bonds( bal fig) $18,228

Discount on Bonds payable($124,000 - $111,972) $12,028

Cash ($124,000 × 1.05) 1,30,200

(Being redemption of bonds at 105 is recorded)

On Jun. 30

Bonds payable $162,000

Premium on Bonds payable($174,960 - $162,000) $12,960

Gain on redemption of bonds ( bal fig) $14,580

Cash($162,000 × .99) $160,380

(Being redemption of bonds at 98 is recorded)

5 0

3 years ago

Is this story: sole proprietorship, partnership, OR corporation?

Mrrafil [7]

It's a partnership. I have to write more words but that's what that arrangement is.

3 0

3 years ago

When can interest be included in the acquisition cost of a plant asset?

hammer [34]

Answer:

a. during the the construction period of a self-constructed asset

Explanation:

"Determining the cost of constructing a new building is often more difficult. Usually this cost includes architect’s fees; building permits; payments to contractors; and the cost of digging the foundation. Also included are labor and materials to build the building; salaries of officers supervising the construction; and insurance, taxes, and interest during the construction period."

Reference: Porter, Debbie, and Tidewater Community College. “Principles of Accounting I.” Lumen, 2019,

7 0

4 years ago