The business risk of a firm:

Business

1 answer:

AURORKA [14]2 years ago

8 0

Answer:

Option D is correct one.

The business risk of a firm: <u>has a positive relationship with the cost of equity for that firm.</u>

Explanation:

Business risk methods a possibility of causing misfortunes or less benefit than anticipated.

The expense of value is the arrival an organization requires to choose if a venture meets capital bring prerequisites back. An association's expense of value speaks to the remuneration the market requests in return for claiming the advantage and bearing the danger of proprietorship.

An organization's all out expense of capital incorporates obligation and value finances that are required to pay enthusiasm on obligation subsidizing and the profits on value subsidizing. The expense of value financing is dictated by evaluating the normal rate of return that could be normal dependent on returns produced by the more extensive market. In this manner, since advertise hazard legitimately influences the expense of value financing, it additionally straightforwardly influences the absolute expense of capital.

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If overhead is applied to individual jobs at a rate of 50% of direct labor costs incurred per job, and $50,000 in direct materia

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<h3>What is meant by total cost?</h3>

Total cost means the combined cost of materials, human labor, and the overheads incurred in the process of production.

Given values:

Cost of direct materials: $50,000

Cost of direct labor: $25,000

Cost of overheads: $12,500 ($25,000 X 50%)

Computation of total job cost:

$\rm Total \rm\ Job \rm\ Cost=\rm\ Cost \rm\ of \rm\ Direct \rm\ Materials+\rm\ Cost \rm\ of \rm\ Direct \rm\ Labor+\rm\ Cost \rm\ of \rm\ Overheads\\\rm Total \rm\ Job \rm\ Cost=\$50,000 + \$25,000 + \$12,500\\\rm Total \rm\ Job \rm\ Cost=\$87,500$

Therefore, when the direct materials are $50,000, the direct labor is $25,000 and the overhead cost is $12,500, then the total cost of the job is $87,500.

Learn more about the overhead cost in the related link:

brainly.com/question/14545063

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