Answer:
It is more convenient to buy the component from the outside supplier.
Explanation:
Giving the following information:
Make in-house:
Direct materials $8
Direct labor $5
Variable manufacturing overhead $3
Fixed manufacturing overhead $5
Unit product cost $ 21
Outside supplier:
Units= 2,900
Selling price= $16
80% of the fixed manufacturing overhead costs are avoidable.
We need to calculate the total cost of each option and choose the cheapest.
Produce in-house:
Total cost= 21*2,900= $60,900
Buy:
Total cost= 16*2,900 + (5*0.2)*2,900= $49,300
It is more convenient to buy the component from the outside supplier.
Answer: Benchmarking
Explanation: Benchmarking refers to the practice in which a company compares its performance with the industry superiors for setting its goals.
The factors to be considered while benchmarking are time, quality and cost of operations to be performed. The company sets benchmark in such factors and tries to achieve those for better performance results.
Bovin and bogus are the 2 variablez used in a spurious relationship
Answer:
no option is correct, since the market value of the bond is $866.32
if the bond matured in 2 years instead of 3, then option B. $911.37 would be correct = $1,000 / [(1.046)x(1.052)] = $911.366 = $911.37
Explanation:
in order to determine the market value of the bond we need to determine the present value of its face value:
market value = PV = future value / [(1 + i₁) x (1 + i₂) x (1 + i₃)]
future value = $1,000
[(1 + i₁) x (1 + i₂) x (1 + i₃)] = [(1 + 4.6%) x (1 + 4.9%) x (1 + 5.2%)] = 1.154311
PV = $1,000 / 1.154311 = $866.32
Answer:
Correct answer is C, payment of accounts payable
Explanation:
Quick ration is computed by adding CASH & CASH EQUIVALENTS, SHORT TERM INVESTMENT AND CURRENT RECEIVABLES then divided by CURRENT LIABILITIES.
Payment of accounts payable involves 2 current accounts that is a deduction on cash and a deduction on accounts payable. A deduction on CASH and ACCOUNTS PAYABLE won't affect the quick ratio. See some illustration below.
Quick ratio is 1:1 (Cash + Accounts receivable + short term investments) / (Accounts payable + accrued expenses)
Cash $50
Accounts receivable $60
Short term investment $40
Total quick assets $150
Accounts payable $120
Accrued expenses $30
Total current liabilities $150
A payment of $20 to accounts payable will decrease cash by $20 and accounts payable by $20. Makes the quick assets decreased to $130 and current liabilities to $130. Quick assets will is be 1:1 ($130 / $130)