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docker41 [41]
3 years ago
15

All of the following items are considered manufacturing costs except for: * Source: Retired ICMA CMA Exam Questions. Tires for a

n automobile manufacturer. Sales commissions for a car manufacturer. Plant property taxes for an ice cream maker. Cream for an ice cream maker.
Business
1 answer:
77julia77 [94]3 years ago
5 0

Answer:

Sales commissions for a car manufacturer

Explanation:

Manufacturing cost are all costs incurred in the process of producing a product. They are costs of items or services directly related to making a product. Examples of these cost are factory utilities, cost of component parts for producing a product such as tires for an automobile manufacturer, tax on manufacturing equipment or building such as plant property taxes for an ice cream maker, cost of manufacturing input such as cream for an ice cream maker, factory depreciation, and among others.

However, sales commissions for a car manufacturer is not a manufacturing cost but a component of selling and distribution expenses to the car manufacturer. Selling and distribution expenses are expenses incurred in order to sell and delivered a product to the consumers, and these include advertisement expenses, salaries and commission of salesmen, cost of price list and catalogue, and others.

I wish you the best.

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A ________ limits the quantity of imported merchandise, thus minimizing competition faced by domestic products.
sertanlavr [38]

Answer: Import  Quota

Explanation:

A quota is  defined as a  government-imposed limit that is placed on  trade whether import or export so as to control goods and services that  enter or leave the country. we have different typos of quota  but we will talk about the

Import Quotas --- To reduce competition faced by local products, government places import quotas on import goods so as to prevent the flood of foreign goods in the market which most times are cheaper than local goods as they are mostly produced with cheaper labor than the domestic products .

7 0
3 years ago
If your company sells products or materials to other companies rather than to the general public, you might maintain a ____ pres
joja [24]

Answer:

B2B

Explanation:

B2B Business-to-Business retail is a process in which a business sells its product to other business rather selling it to general consumer or general public. In B2C Business sells products to direct consumer, B2S Business sells products to Solopreneur and S2B Science reasearchers sell their work to Business.

8 0
3 years ago
Interest rates on 4-year Treasury securities are currently 5.8%, while 6-year Treasury securities yield 7.95%. If the pure expec
Hoochie [10]

Answer:

2 year yield 4 years from now = 11.0%

Explanation:

2 year yield 4 years from now = [ ( 1 + 0.0795)^6 / ( 1 + 0.058)4]1/2 - 1

2 year yield 4 years from now = [ 1.50073 / 1.286466]1/2 - 1

2 year yield 4 years from now = 1.011 - 1

2 year yield 4 years from now = 11.0%

7 0
3 years ago
If a company is considering the purchase of a parcel of land that was acquired by the seller for $86,000 is offered for sale at
Lerok [7]

Answer:

$139,000

Explanation:

The value of an asset is recorded in the book as the price at which it was acquired. The cost of the land will be recorded as the price which it was paid for or the purchase price.  

In asset acquisitions, the value of land includes the purchase price plus all other relevant expenses such as legal fees, commissions, and survey fees. Discounts received are deducted from the purchase price before the price is recorded in the books. An organization will value and depreciate its assets based on the price it purchased them.

6 0
4 years ago
A piece of laborsaving equipment has just come onto the market that Mitsui Electronics, Ltd., could use to reduce costs in one o
Veronika [31]

Answer:

1a. Payback period = <u>Initial outlay</u>

                                  Annual cost saving

                                = <u>$484,500</u>

                                    $85,000

                                 = 5.7 years

b. The equipment should not be purchased because it has a longer payback period than the company's required payback period.

2a.                                      $

Annual cost saving         85,000

Less: Depreciation          <u>40,375</u>

Annual profit                    <u>44,625</u>

Simple rate of return = <u>Annual profit</u>  x 100

                                      Initial outlay

                                      <u>$44,625</u>    x 100

                                      $484,500

                                    = 9.21%

Depreciation = <u>Cost - Residual value</u>

                         estimated useful life

                      = <u>$484,500 - 0</u>

                               12 years

                      = $40,375 per annum

2b, The equipment should not be purchased because the simple rate of return is lower than the company's required rate of return.

Explanation:

Payback period is the ratio of initial outlay to annual cost saving. It is the period in which the initial outlay is recouped.

Simple rate of return is the ratio of annual profit to initial outlay. It measures the rate of return on capital invested.

5 0
3 years ago
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