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barxatty [35]
4 years ago
10

A local restaurant owner is considering expanding into another rural area. The expansion project will be financed through a line

of credit with City Bank. The administrative costs of obtaining the line of credit are​ $500, and the interest payments are expected to be​ $1,000 per month. The new restaurant will occupy an existing building that can be rented for​ $2,500 per month. The incremental cash flows for the new restaurant include A. ​$500 administrative​ costs, $1,000 per month interest​ payments, $2,500 per month rent. B. ​$2,500 per month rent. C. ​$500 administrative​ costs, $2,500 per month rent. D. ​$1,000 per month interest​ payments, $2,500 per month rent.
Business
1 answer:
Vladimir79 [104]4 years ago
5 0

Answer:

B) ​$2,500 per month rent.

Explanation:

Incremental cash flows do not include interest payments on investment capital, since the cash flows should be equally generated if you invest your own money, another partner invests his money or someone else lends it to you. The same logic applies to the administrative costs of the credit line.

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Select each of the items with the best-numbered description of its purpose.
iren2701 [21]

Answer:

1. D

2. B

3. G

4. A

5. C

6. E

7. F

Explanation:

1. Notifies the materials manager to send materials to a production department: Materials requisition.

2. Holds costs of indirect materials, indirect labor, and similar costs until assigned to production: Factory overhead account.

3. Holds costs of direct materials, direct labor, and applied overhead until products are transferred from production to finished goods (or another department): Work in the process inventory account.

4. Standardizes partially completed units into equivalent completed units: Equivalent units of production.

5. Holds costs of finished products until sold to customers: Finished goods inventory account.

6. Describes the activity and output of a production department for a period: Process cost summary.

7. Holds costs of materials until they are used in production or as factor overhead: Raw materials inventory account.

5 0
3 years ago
Which of the following is the deliberate process through which someone becomes aware of personal​ skills, interests,​ knowledge,
ANTONII [103]

Answer:

Career planning

Explanation:

Career planning is self-assessment and preparation undertaken by an individual who has a decent career path. Career planning phase is a continuous process of discovering oneself, establishing career aspirations, evaluating skills and finding the best career opportunities.

5 0
4 years ago
If a person is risk averse, then she has a. diminishing marginal utility of wealth, implying that her utility function gets flat
Mademuasel [1]

Answer:

The answer is: A) diminishing marginal utility of wealth, implying that her utility function gets flatter as wealth increases.

Explanation:

If an investor is risk averse, he or she will earn a lower return rate than a non risk averse investor. As his or her wealth increases, the total utility of wealth increases but at a decreasing rate. This means that the utility function gets flatter as wealth increases for a risk averse investor.

6 0
4 years ago
When an exception is thrown in a function, the function-call stack is ____ so that the exception can be caught in the next try/c
guapka [62]
When an exception is thrown in a function, the function-call stack is unwound so that the exception can be caught in the next try/catch block. 
8 0
3 years ago
One measure of the inflation rate is the a. percentage change in the CPI of adjacent years. b. sum of the CPIs of adjacent years
harina [27]

Answer:

all I know is that im broke

Explanation:

bc

3 0
2 years ago
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