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astraxan [27]
3 years ago
14

1. Select the correct statement regarding relevant costs and revenues.

Business
1 answer:
Gala2k [10]3 years ago
8 0

Complete Question:

1. Select the correct statement regarding relevant costs and revenues.

A. Sunk costs are not relevant for decision-making purposes.

B. Relevant costs are frequently called unavoidable costs.

C. Direct labor is an example of a unit-level cost.

D. Only variable costs are relevant for decision making.

Answer:

1. A

2. D

3. B

Explanation:

1. The correct statement regarding relevant costs and revenues is that sunk costs are not relevant for decision-making purposes. 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.

2. Expected future revenues that differ among the alternatives under consideration are often referred to as differential revenues. It is the difference in revenues among two (2) alternatives, which would influence decision making.

3. The benefits sacrificed when one alternative is chosen over another are referred to as opportunity costs. It is also referred to as alternative forgone.

<em>For example, Tony gives up going to see a new movie at the cinema in order to prepare for an examination, so as to get a good grade</em>.

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Find the Mean of 18, 24, 17, 21, 24, 16, 29, 18
dexar [7]

Answer:

20.875

Explanation:

18+24+17+21+24+16+29+18=167/8=20.875

5 0
3 years ago
Read 2 more answers
You are given the following information for Lightning Power Co. Assume the company's tax rate is 35 percent.
olga55 [171]

Answer:

The company's WACC is 9.14%

Explanation:

cost of preferred stock

= (dividend on preferred stock)/(current market price)

= [$100*4%]/$72

= 5.56%

total finance = debt + equity + preferred stock

                     = (8,000*$1,060) + (310,000*$57) + (15,000*$72)

                     = $8,480,000 + $17,670,000 + $1,080,000

                      = $27,230,000

weight of debt = debt/total finance

                         = $8,480,000/$27,230,000

                         = 0.31

weight on equity = equity/total finace

                             = $1.080.000/$27,230,000

                             = 0.04

WACC

= (weight of debt*after tax cost of debt) + (weight on equity*cost of equity)

= (0.31*0.0393) + (0.65-0.1185) + (0.04*0.0556)

= 9.14%

Therefore, The company's WACC is 9.14%

5 0
3 years ago
Correcting a market with an externality through taxation is _________ correcting it through a set output target from command and
Kipish [7]

Correct question:

Correcting a market with an externality through taxation is _________ correcting it through a set output target from command and control.

Group of answer choices

A. less efficient than

B. as efficient as

C. either more or less depending on the elasticity of demand

D. more efficient than

Answer:

Correcting a market with an externality through taxation is (A) less effective than correcting it through a set output target from command and control.

<h3>Correcting a market with taxation:</h3>
  • The government can discourage the consumption of harmful products by raising taxes on them.
  • Cigarette and alcohol taxes, for example, are raised on a regular basis to discourage their consumption and limit their adverse impacts on unconnected third parties.
<h3>Command and control strategies:</h3>
  • Command and control is a sort of environmental regulation that allows policymakers to expressly regulate both the amount and the procedure by which a company should maintain environmental quality.
  • Correcting marketing is more effective than correcting manufacturing through taxation.
<h3>Reason -</h3>

As it is stated above Correcting marketing is more effective than correcting manufacturing through taxation.

Therefore, Correcting a market with an externality through taxation is (A) less effective than correcting it through a set output target from command and control.

Know more about market correction here:

brainly.com/question/2626419

#SPJ4

7 0
2 years ago
A landowner in Texas is offered $200,000 for the exploration rights to oil on her land, along with a 25% royalty on the future p
Shtirlitz [24]

Answer:

b. She should develop herself as the EMV of developing is $1.125 million, which is higher than the EMV of selling.

Explanation:

The probability of discovered oil = 0.25 (25%)

Selling the exploration right= Selling Price + Probability of discovered oil × Royalty% × Future Profit

= $200,000 + 0.25 × 0.25 × $7,500,000 = $668,750

Developing = Probability of finding the oil × Future Profits - Cost of Well

= 0.25 × $7,500,000 - $750,000 = $1,125,000

= $1.125 million

Therefore the EMV for selling the exploration rights is less than the developing, the landowner will develop the site by his own.

4 0
3 years ago
Gilbert's expects its September sales to be 20% higher than its August sales of $150,000. Manufacturing costs were $100,000 in A
sveticcg [70]

Answer:

$61,500.

Explanation:

Given that,

Beginning cash balance on September 1 = $7,500

Cash receipts from credit sales made in August:

= $150,000 × 70%

= $105,000

Cash receipts from credit sales made in September:

= ($150,000 × 1.20) × 30%

= $54,000

Cash disbursements from purchases made in August:

= $100,000 × 75%

= $75,000

Cash disbursements from purchases made in September:

= $120,000 × 25%

= $30,000

Ending cash balance September 30:

= Beginning cash balance + Cash receipts from credit sales made in August + Cash receipts from credit sales made in September - Cash disbursements from purchases made in August - Cash disbursements from purchases made in September

= $7,500  + $105,000  + $54,000  - $75,000  -  $30,000

= $61,500.

6 0
3 years ago
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