Answer:
The correct answers are the following:
a - 4 Sunk
b - 5 Opportunity
c - 3 Fixed
d - 2 Variable
e - 6 Incremental
f - 1 Recurring
g - 7 Direct
h - 8 Non-recurring
Explanation:
a) <em>Sunk costs</em> are those that have already occurred in the past and they can not be recovered again so therefore that they are not relevant at the time of taking decisions regarding the futue.
b) <em>Opportunity costs</em> are those that try to measure and show the sacrifice done at the time of making a decision when that sacrifice represents the best second option that the person could have done.
c) <em>Fixed costs</em> are those that are always the same amount and do not change with the activity level of the production of the company.
d) <em>Variable costs</em> are those that do change with the amount of activity level that the company has during the production process.
e)<em> Incremental costs</em> are those that increase the cost level of the production while the output level increases as well, so they are a concept on the margin.
f) <em>Recurring costs</em> are those that tend to repete continously in the production process so the company already know how much the amount of the cost is.
g) <em>Direct costs</em> are those that the company associates with the production process regarding the commodities and all the primary sources that are needed to produce the good and therefore that they impact directly in the production and in the cost of the final product.
h) <em>Non-recurring</em> costs are those that the company are not familiar with due to the fact that they do not repete often and therefore tend to happen once in a while.
Answer:
Explanation:
Yield rate on unsecured bonds=12%
Yield rate on zero coupon bond=12%
Yield rate on 10% mortgage bonds=12%
Total debt value=10m+25m+20m=55m
Weight of unsecured bonds=10/55=0.182
Weight of zero coupon bonds=25/55=0.455
Weight of 10% mortgage bonds = 20/55= 0.363
Cost of debt=0.182*12+ 0.455*12+0.363*12=12%
Answer:
Employees frequently complain about the inconsistent assistance they receive from the HR department due to its large size.
Explanation:
Having a specialized, embedded HR unit is beneficial to each, specific unit, as HR would cater to every department and its special needs. On the contrary, centralized HR tends to give inconsistent help, as they always assign a different person or team when a problem arises.
So, if the employees complained that they cannot receive adequate help from the centralized HR, it would be wise to do what Roberta suggested.
Answer and Explanation:
a. The computation of the weighted average contribution margin ratio is shown below:
The Contribution margin ratio is
= (Combined contribution ) ÷ (Sales)
= ($60,000 + $180,000) ÷ ($1,000,000)
= ($240,000) ÷ ($1,000,000)
= 0.24
b. Now the break even point in dollars is
= Fixed cost ÷ contribution margin ratio
= $300,000 ÷ 0.24
= $1,250,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
When consumption increases, factories produce more, consequently having to expand, when they expand they hire new employees, meaning that more people have money to buy more things and boost the market.
It is almost like the balance of an ecosystem, if everything works well, the tendency is to continue improving