Answer:
This method encourages the selling division to operate efficiently.
Explanation:
Absorption cost transfer pricing is very essential to determine the right amount in which goods and services will be sold in the market. It involves setting a price for a particular product with inclusion of all its variable costs.
Absorption cost transfer pricing enables an organization to maximise profit this is because all the different cost incurred during production are added to the price of the product.
Answer:
At the end of the 4th year, the original $87,000 less an annual vacation expense of $10,000 would have compounded at an interest rate of 7% to become $69,640
Graduate school costs $24,060. The funds will expire after 2.9 years
Explanation:
Kindly refer to the attached document for clearer breakdown of the workings
Answer:
a. -$82,250
Explanation:
Calculation for what is the projects initial cash
flow for net working capital
Initial cash flow=-$216,000 + $181,000 - ($525,000 *0.09)
Initial cash flow=-$216,000 + $181,000 - $47,250
Initial cash flow = - $82,250
Therefore the projects initial cash
flow for net working capital will be - $82,250
<u>Answer:</u>
bulk
<u>Explanation:</u>
The Tomatoes are produced in a bulk and the canned products are sent out in batches but the process of moving tomatoes from receiving through packaging and processing is done on a conveyor belt which is a continuous process.
Therefore, the production of tomatoes in a bulk is a continuous process which goes on around the clock on a conveyor belt and the final products are sent out in batches which have their own unique identity number.
Answer:
option (c) $875 per year
Explanation:
Given;
Average cost of collision claims for careful drivers = $500 per year
Average cost of collision claims for for poor drivers = $3000 per year
Poor drivers known by the company = 15%
thus,
Careful drivers = (100% - 15%) = 85%
Therefore,
Insurance company's breakeven price for the collision insurance
= (Poor drivers known × Average cost of collision for poor drivers ) +( Careful drivers × Average cost of collision claims for careful drivers)
= 0.15 × $3000 + 0.85 × $500
= $450 + $425
= $875 per year
Hence, the correct answer is option (c) $875 per year