Answer:
Spend $25000 on cyber insurance to transfer the risk
Explanation:
A cyber insurance is the best option since it protects the business from internet based risk such as the breach of customer database and other risks involved in the use of the internet by businesses and individual internet users.
The cost of purchasing a Data Loss Prevention solution that would cost $30000 per year will amount to $150000 in 5 years which will be more expensive compared to the cost of the risk it is been used to prevent. hence it is not a good option. also accepting the risk is a very bad option becasue the risk might harm the business beyond expectation.
The answer is B a hospital
Answer:
D) Johnson has failed to use the correct cost driver as the cost-allocation base for setup costs.
Explanation:
One of the main disadvantages of ABC costing method is that it is very hard and expensive to implement, and sometimes you cannot allocate all overhead costs to specific cost drivers. That is what happened here with Johnson's costing method, they combined two cost drivers and allocated resources using the number customer orders which is not a valid base, e.g. one single large order represents higher costs than 10 small orders.
ABC costing is not accepted by US GAAP due to its limitations or how hard it is to apply correctly, but it is a very useful information source for making decisions. The problem is, if gathering the information is worth the effort and extra cost of ABC?
Answer:
The benefits of greenfield ventures are:
- Investors have larger control over the business they are creating fro scratch rather than acquiring an existing local business.
- The investor can avoid intermediary costs.
- The investor also has the possibility of setting their own marketing strategies.
Greenfield ventures means that the subsidiary will be built from scratch, which allows the parent company to fully shape its subsidiary as they want.
Answer:
Deductible interest expense of $1440 and deductible education expense of $4000.
Explanation:
There are certain tax laws which allows a tax payer to deduct his expenses from the taxable amount. The tax payer can deduct interest expense from the taxable amount since it is a tax shield. Lionel can deduct an interest expense of $1440 from the taxable amount and he can deduct $4000 for his education from the taxable amount.
