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densk [106]
3 years ago
10

Which of the following is true of relevant costs? a.Relevant costs are past costs that do not differ from one alternative to ano

ther. b.Relevant costs have no effect on decision making. c.Relevant costs are sunk costs that alter future decisions. d.Relevant costs are future costs that differ across alternatives.
Business
1 answer:
Sloan [31]3 years ago
7 0

Answer:

D

Explanation:

Relevant cost are cost that affects future cash flows. Cost that differ across alternatives are also relevant but are known as variable cost. All variable cost are relevant but not all relevant cost are variable.

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I will pay 5$ to the who solve it
elena55 [62]

Answer:

a. The price that the company should sell the new toy at if it prices at cost plus profit at 100% profit markup is:

= $20.

b. The price that the company should sell the new toy at if it prices using competitive pricing is:

= $22.50 (average of competitors' prices)

c. The price that the company should sell the new toy at if it prices using penetration pricing is:

= $20 (lowest market price)

d. The price that the company should sell the new toy at if it prices using price skimming is:

= $25.

Explanation:

a) Data and Calculations:

Cost of producing a new toy = $10

Competitors' prices are:

Product A – $25

Product B – $20

Product C – $23

Product D–  $22

Total =          $90

Average price = $22.50 ($90/4)

Cost =   $10

Markup   10 ($10 * 100%)

Price = $20

b) An important consideration in the pricing of products is customers' and competitors' reactions to the firm's selling price.  The purpose of considering customers is to ensure that enough demand is generated to cover production cost and make profits.  Competitors can wage price wars to discourage new entrants into their markets.  Many pricing methods are in use, depending on the prevailing market realities.

4 0
2 years ago
In the logistics-systems design matrix, volume, cost and speed of delivery are three variables (assume three levels: low, modera
Digiron [165]

Answer:

High volume

Low cost

Moderate speed of delivery.

Explanation:

High - volume : The train can a large volume of goods at a single time as high number of coaches can be added to the train.

Low - cost : As the volume of goods carried in a single time by train is very large therefore the cost of transportation reduces to lowest than other means like air logistics.

Moderate speed of delivery : The speed of logistic delivery from one part to another part is comparatively lower than the air logistics transport system but is more than the road  logistics transport system in terms of long distance like in different states.

7 0
3 years ago
What is the purpose of collateral in a secured loan?
strojnjashka [21]

Answer:

To reduce risks against default.

6 0
2 years ago
Grouper Inc. has decided to raise additional capital by issuing $199,000 face value of bonds with a coupon rate of 6%. In discus
leonid [27]

Answer:

A. Dr Cash 152,000

Dr Discount on bonds payable 40,800

Cr Bond Payable 170,000

Cr Paid-in Capital-Stock Warrants 22,800

B. Dr Cash 152,000

Dr Discount on bonds payable 18,000

Cr Bond Payable 170,000.00

Explanation:

A. Calculation for the Journal entry that should be made at the time of the issuance of both the bonds and warrants

Dr Cash $200,900

Dr Discount on bonds payable $21,735

($199,000 - $177,265)

Cr Bond Payable $199,000

Cr Paid-in Capital-Stock Warrants $23,605

(b) Preparation of the journal entry in a situation were the warrants were nondetachable.

Dr Cash $200,900

Cr Discount on bonds payable $1900

($199,000-$200,900)

Cr Bond Payable $199,000

Workings:

Value assigned to bonds=179,100/($179,100+$23,880)

*$200,900

Value assigned to bonds=179,100/$202,980

*$200,900

Value assigned to bonds=$177,265

Value assigned to warrants=$23,880/$202,980*$200,900

Value assigned to warrants=$23,605

8 0
3 years ago
Tyson is a 25% partner in the KT Partnership. On January 1, KT distributes $16,000 cash, inventory with a $16,000 fair value (in
Marianna [84]

Answer:

D) $8,000 inventory, $0 land

Explanation:

Tyson's basis in the distributed inventory and land will be $8,000 inventory, $0 land

Because he initially first allocates his outside basis to the assets distributed which is in an amount that is equal to KT's basis which is ($20,000 cash and $8,000 land).

Therefore this results in a required decrease of $0 due to the basis he reduces in the land by the required decrease, which thereby results in a basis of $0 to the land.

4 0
2 years ago
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