Answer:
machine enter the accounting at <em> 138,210 dollars</em>
Explanation:
cost: 128,000 x ( 1 - 3%) = 124,610
shipping cost: 2,800
installation cost: <u> 10,800 </u>
total incurred cost
to leave the machine
ready for use: <em> 138,210</em>
<em />
<em>The damge are expenses for the period as they arent a necessary cost to utilize the machine.</em>
<em>The company used the discount price over the list price as this is the atual cost incurred</em>
Answer:
The correct answer is letter "C": Profitable product lines may be dropped.
Explanation:
The decision of making a product in-house or relying on an outsourcing manufacturer is evaluated mainly by comparing the costs that handling a new production line carries. While outsourcing can save a company a great amount of money in <em>labor, equipment, materials, </em>and <em>knowledge</em>, quality control is not managed directly.
However, <em>a new line of components in-house implies incurring in most costs that could conflict the production of existing profitable product lines that could see their numbers reduce gradually until the product drops.</em>
Answer:
Fixed Cost Function = Average Cost - Average Variable cost
Explanation:
A fixed cost is the one which does not changes with the level of production. These cost are irrelevant to number of units production. It is not affected by the units produced and sold. The change in fixed cost does not affect the marginal cost. The marginal cost is the variable cost that is incurred by producing one more unit. These costs are affected by the level of production.
Answer:
e. Project X has both a higher present value and a higher future value than Project Y.
Explanation:
The project X cash flows are higher in initial years than of project Y. The present value of project X cash flows will be greater than project Y. The time value of money of project X will be greater than Project Y.
The future value of Project X will also be higher than project Y because it has higher cash flows in earlier years. When future value will be calculated the project X will give the higher Future value than project Y.
