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3 years ago

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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Compare and contrast the risks and goals of entrepreneurs and inventors.

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The difference between an inventor and an entrepreneur is that, an inventor develops new services and goods but he does not have them to the market. An entrepreneur risks resources may it be human, capital or natural in order to bring to the market improved and new products.

The risk which is incurred between entrepreneur and inventor is that, entrepreneur undergoes huge financial risks because a lot of money is being invested while inventor has low financial risk since there is no big investment which is being required.

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3 years ago

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Lorinda has started to think about saving for retirement. She reads a recommendation that says she should save at least 3/10 of

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Answer:

$\large\boxed{\large\boxed{\$ 13,200}}$

Explanation:

This is an algebra question about fractions.

You need to find 3/10 of the income, and the income is $44,000.

You must muliply the fraction 3/10 by the $44,000 income.

To multily one fraction by a whole number you convert the whole number to a fraction with denominator 1. Then multiply numerator with numerator and denominator with denominator. This is how:

$\dfrac{3}{10}\times \dfrac{\$ 44,000}{1}=\dfrac{3\times \$ 44,000}{10}=\\\\\\=\dfrac{\$ 132,000}{10}=\$ 13,200$

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3 years ago

Majestic Corporation manufactures wheel barrows and uses budgeted machine hours to allocate variable manufacturing overhead. The

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Answer:

$409185

Explanation:

Given: Budgeted output units: 28,475 units

Budgeted machine-hours: 17,085 hours

Budgeted variable manufacturing overhead costs for 28,475 units: $358,785

Actual output units produced: 32,475 units

Actual machine-hours used: 15,000 hours

Actual variable manufacturing overhead costs: $384,060.

First, we will find Budgeted machine hour per unit produced.

Budgeted machine hour per unit produced= $\frac{Budgeted\ machine\ hour}{Budgeted\ units}$

⇒ $Budgeted machine hour per unit produced= 17085\div 28475= 0.6$

∴Budgeted machine hour per unit produced= 0.6

Budgeted machine hours allowed for 32475 units= $32475\times 0.6= 19485$

Budgeted variable overhead rate per machine hour= $\textrm {Budgeted variable manufacturing overhead costs}\div Budgeted\ machine\ hours$

Budgeted variable overhead rate per machine hour= $358785\div 17085= \$ 21$

Now, lets find out flexible budget amount.

Flexible budget amount= $\textrm{Budgeted machine hours allowed}\times \textrm{Budgeted variable overhead rate}$

Flexible budget amount= $19485\times \$ 21= \$ 409185$

∴Flexible budget amount for variable manufacturing overhead= $409185

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3 years ago

You can buy an item for $125 on a charge with the promise to pay $125 in 60 days. Suppose you can buy an identical item for $115

Margarita [4]

Answer:

Effective annual interest rate=0.52%

Explanation:

Step 1: Express the formula for calculating interest

The formula for calculating interest can be expressed as;

I=PRT

where;

P=principal amount borrowed

R=annual interest rate as a percentage

T=number of years

Step 2: Determine the value of the variables P, R and T

In our case;

I=$10

P=(125-10)=$115

R=unknown=r

T=2 months=2/12=1/6 years

replacing in the expression;

10=115×r×(2/12)

10=(230/12)r

r=10×12/230=0.5217

0.5217 rounded off to the nearest 2 decimal places is:

r=0.52%

Effective annual interest rate=0.52%

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