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3 years ago

Most companies allocate facility-level activity costs directly to products for decision-making purposes.True or false?

Business

1 answer:

Finger [1]3 years ago

4 0

Answer:

False

Explanation:

Facility-level costs are being the type of activity based cost activities and it simply sustains a facility’s general manufacturing process. We can say some samples about this type of costs:

1) The costs about depreciation or rent of a factory building

2) The costs about salary of a plant manager

3) The costs about insurance, taxes, etc.

4) The costs about training

As you see all about this cost mentioned only in manufacturing processes not in decision making.

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A company has determined that its optimal capital structure consists of 43 percent debt and the rest is equity. Given the follow

ale4655 [162]

Answer:

31.5%

Explanation:

Given from the question kd = 7.0 %

Tax rate = 35 %

P0 = $ 28.86

Growth g = 4.9 %

D1 = $ 0.94

First find the cost of common stock by

rS = D1/P0 + g

=0.94/$28.86 + 0.49

=0.523

= 52.3%

Finally, calculate the weighted average cost of capital WACC,

using rs= 0.523,

Tax rate =43% =0.43

Equity E 100% - 43% = 57% =0.57 and

kd=7.0 % = 0.07

so WACC = (D/A)(1 - Tax rate)kd+(E/A)rs

= 0.43(1 - 0.43)(0.07) + 0.57(0.523)

0.0172 + 0.298

= 0.315

= 31.5%

6 0

3 years ago

Which is a factor used in assessing a nation's wealth with the human development index?

ra1l [238]

The figure utilized evaluating a country's riches with the Human Development Index is a country's GDP for each individual. The Human Development Index (HDI) is a composite measurement of future, instruction, and per capita pay markers, which are utilized to rank nations into four levels of human improvement.

6 0

3 years ago

Read 2 more answers

Suppose that a manufacturer can produce a part for $8.00 with a fixed cost of $6 comma 000. Alternately, the manufacturer cou

Diano4ka-milaya [45]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

A manufacturer can produce a part for $8.00 with a fixed cost of $6,000.

A supplier in Asia offers the part for $10.00, which includes transportation.

The anticipated production volume is 1,300 units.

First, we need to calculate the total cost of making the part in-house. We will calculate based on two situations:

Fixed costs are avoidable

Total cost= variable cost + fixed costs= 8*1,300 + 6,000= 16,400

Fixed costs are unavoidable:

Total cost= total variable cost= 8*1,300= $10,400

Now, we calculate the total cost of purchasing:

Purchase= 10*1,300= $13,000

Based on this information, the purchase is more convenient if at least $3,400 of the fixed costs are avoidable.

7 0

3 years ago

You are working as a private math tutor to raise money during spring break. Assuming you want to earn as much money as possible,

maria [59]

Answer:

Assuming you want to earn as much money as possible, you should work longer hours so that you are paid more.

Explanation:

3 0

2 years ago

Suppose that Jack, Sophia, and Hal enter into a contract to close on the business without the non-competition agreement. Jack st

Nitella [24]

Answer:

c. If Jack does not accept the $100,000, there is a valid contract for the sale of the business, without a non-competition clause.

Explanation:

If Jack, Sophia, and Hal enter into a contract to close on the business without the non-competition agreement, and Jack stated that he would probably sign the non-competition agreement if they included an extra $100,000.

If a month later, Hal and Sophia bring Jack $100,000. the result will be If Jack does not accept the $100,000, there is a valid contract for the sale of the business, without a non-competition clause.

Jack CAN change his mind, since he stated that he would probably accept $100,000 additional for the non-competition agreement.

6 0

3 years ago