Answer:
C) $24,000
Explanation:
Each individual setup cost is equal to the total cost assigned to setups divided by the actual setups completed during the period:
individual setup cost = total costs assigned to setups / setups completed = $120,000 / 100 setups = $1,200 per setup
If each setup costs $1,200 and product X5 required 20 setups, then the total amount assigned to X5 setups = $1,200 x 20 = $24,000
Answer:
Explanation:
(a) i. Payment = $7000
For cash flow payment = $750 (Per year at 5%, for 12 years)
= 750*8.863
= $6697.25
This shows it is better to receive $7000 right now.
ii. FV = $10000
PV = FV(P/F, 5%, 10 years)
= 10000*0.6139
= $6139
And Payment of $1000 per year, for 5 years
PV = 1000 (per year at 5%, for 5 years)
= $1000*7.722
= $7722
It is better to get $1000 per year for 5 years
(b)i. PV = $1000
fV = $1402.55
Interest = i
by formula
1000 = 1402.55 (p/f, i, 5)
1000 =
=
1 + i = 1.069
Collect like terms
i = 1.069 - 1
i = 0.069
i ≈ 7%
ii. PV = $166666.67
Perpetuity = 15000
interest is unknown
166666.67 = 15000/i
i = 15000/166666.67
i = 0.089
i ≈ 9%
Answer and Explanation:
b. a concept developed by Adam Smith to describe the virtues of free markets.
Answer:
Impact on the flow of financial capital:
Financial capital flow / Value of the U.S. dollar / Price of the U.S. dollar:
No Change / Appreciate / Increase
Financial capital flow will not change. Financial capital flow does not refer to the flows for purchase of goods and services, but only for investments.
The value of U.S. dollar will appreciate relative to the increased demand.
The price of the U.S. dollar will increase, given the law of supply and demand.
Explanation:
a) Financial Capital Flow refers to the movement of investment capital, in and out of countries. When money for investment goes from one country to another, it is a capital flow, in-flow for the country receiving and out-flow for the country investing. The term does not include money people and businesses use to purchase each others' goods and services. There is why, in this scenario, there is no recorded change in financial capital flow in the U.S.
b) The value of the U.S. dollar is the total amount of U.S. dollar which a foreign currency can purchase at a particular exchange rate. It is based on the exchange rate, otherwise called the price of the U.S. dollar to another currency.
c) Price of the U.S. dollar is the exchange rate. It shows the value of one U.S. dollar vis-a-vis a foreign currency.
Answer:
Option A and B
Explanation:
The company desires to estimate the cost of the job so that it can minimize it by emphasizing control. This is one of the major reasons why the companies estimate cost of the job, product or service. So option A is correct.
Option B is also correct because the companies have to form contracts with its customers and for that reason predetermined overhead rates helps a lot estimating the price of the product which the company and customer can agree upon.
Option C is incorrect because predetermined costs are estimates and estimates are not always accurate.
Option D is false because daily recording of overheads requires predetermined overhead rates which is adjusted at the month end or quarter end or year end. So its not useless at all.