Answer: No. The machine shouldn't be replaced.
Explanation:
Proposal to Replace Equipment
Annual Variable Costs - Present Equipment = $4000
Less: Annual Variable Costs - New Equipment = $1500
Annual Differential Decrease in Cost = $2500
Number of Years Applicable = 5
Total Differential Decrease in Cost = $2500 × 5 = $12500
Proceeds from Sales of Present Equipment = $2000
Cost of New Equipment = $8000
Annual Net Differential Increase in Cost - New Equipment = $18000 - $2000 = $16000
The machine shouldn't be replaced as the total differential decrease in cost is less than the annual net differential increase in cost of the new equipment.
Answer:
True.
Explanation:
ISO 9000 is a certification program attesting that a factory, laboratory, or office has met the rigorous requirements set by the International Organization for Standardization.
Basically, the ISO 9000 is a tripartite continuous process that involves planning, controlling and documentation of quality in a business firm or organization.
This ultimately implies that, the ISO 9000 is a set of standards that typically guides an organization in ensuring that they meet both the stakeholders and consumer requirements or needs with respect to their products and services under statutory and regulatory requirements at a specific period of time.
Answer:
Compatibility principle
Explanation:
The compatibility principle prescribes that an accounting information system has internal controls, meaning, it employs methods and procedures that allow managers to control and monitor. The compatibility principle is a concept of an information system that suggests the accounting system of any type of organization should adapt to its employees or managers, operations and business structure.
For example, if goods are sold so fast but the orders may not be processed fast enough, here we will apply compatibility principle and we will add new technology to the system to solve this issue.
Pluralistic ignorance effect is a practice in which no ones believes but everyone thinks they believes. This is very particular to a business administration environment. I'll give you an example,
You are the kind of person that wants cleanliness and you notice that your friend is so messy, supposed to be you will tell her about her messiness but you noticed that no one cares about her, thus you stopped yourself from speaking,
The US has a form of capitalism with modest government interference with a current increasing tendency towards laissez-faire.
