Answer:
Explanation:
This could be due a number of factors.
1 Externality effect
2 There could also be market failure, when property rights are not properly defined.
Externality is the effect of a third party on a property right, when all parties cannot come to an agreeable resolution on properties this could lead to inefficient use of land.
Also when the property rights are not put in place its difficult to come to a resolution that satisfies all parties.
Answer:
A) IRR, NPV, Payback period
Explanation:
According to Graham and Harvey's 2001 survey, for capital budgeting decision making, the following capital techniques are used which are described below:
Internal rate of return: It is that rate of return in which the net present value is zero that means initial investment and the present value of the annual cash inflows are equal
Net present value: In this method, the initial investment is subtracted from the discounted present value cash inflows. If the amount comes in positive than the project is beneficial for the company otherwise not.
The computation of the Net present value is shown below
= Present value of all yearly cash inflows after applying discount factor - initial investment
The discount factor should be computed by
= 1 ÷ (1 + rate) ^ years
Payback period: It refers to the period in which the initial investment amount should be recovered. It is denoted in years
The formula to compute the payback period is shown below:
= Initial investment ÷ Net cash flow
<h3>Hello there!</h3>
Your question asks what order does a activity-based costing system work by.
<h3>Answer: b, c, a, d</h3>
The order:
1. b). Identify activities and estimate their total indirect costs.
2. c). Identify the allocation base for each activity and estimate the total quantity of each allocation base.
3. a). Compute the predetermined overhead allocation rate for each activity.
4. d). Allocate indirect costs to the cost object.
The reason why the answer choice "b, c, a, d" is the correct answer because that's the correct order for the activity-based costing system.
The activity-based costing system first identifies the activities that are going on and find the indirect cost, then identifies the allocation base for the activities that are occurring to find the quantity of the allocation base, then solve the pre-determined rate of allocation for each activity, and finally get the indirect cost for the object.
<h3>I hope this helps!</h3><h3>Best regards,</h3><h3>MasterInvestor</h3>
Answer: A Corporation, because she will need financing to get started.
Explanation:
As Annabeth would like to buy a factory to begin making the parts, she would would need a huge cash outlay to get started. By starting a Corporation, she can raise cash easier from the shareholders as well as utilize the knowledge and expertise of others who will join the company to help her in areas she might not be well versed in such as in Accounting or business administration.
Another reason a Corporation would be better is because of the realization of her longer term plans. A Corporation is more likely to expand in the the future which will enable Annabeth realize her dreams of selling to Europe and South America. Indeed, she has a better chance of achieving that sooner rather than later.
Answer:
Whether the technology provides benefits and responds to customers needs
Explanation:
Technological innovation can be defined as the introduction of new technical products and services or improving an existing ones.
One major reason for this is to address human needs and better serve individual . Therefore whenever any firm wants to launch any new product , it is important that it must create a balance between what is technically possible and whether the new technology provides benefits and responds to customers needs.
