Answer:
B. Natural barriers cannot prevent the entry of new firms.
Explanation:
Natural barriers cannot prevent the entry of new firms as firms should be free to enter and exit the industry. Every firm's actions or dealings influence the profits of all the other firms.
Answer:
Option C. The highest NPV is always the best option.
Explanation:
The reason is that IRR assumes that the reinvestment rate is also at IRR which is not a realistic assumption. The Net Present Value resolves this as it assumes that the reinvestment rate is cost of capital and hence is more better than IRR to appraise the project.
The decision rule in the Net present value method is that the project which has higher positive Net present value is regarded as best project among two mutually exclusive projects.
Answer: Increase; increase
Explanation:
Efficiency is so vital to business and manufacturing. The ability of a business to produce and curb minimal loss will give a boast on production and encourage manufacturers to do more, especially when they have the ability to produce in large quantity (by batches) and still get a good ratio for the number of goods manufactured. This is where machines has aided productivity, as they were introduced, productivity increased and they were minimal loss and time waste when producing. When technology allows for more of this effective machines, manufacturers will produce more and there would be a boast in investment.
Answer:
Predetermined manufacturing overhead rate= $33.1 per direct labor hour
Explanation:
Giving the following information:
Salary of factory supervisor $37,800
Heating and lighting costs for factory $22,900
Depreciation on factory equipment $5500
The company estimates that 2000 direct labor hours will be worked in the upcoming year.
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (37,800 + 22,900 + 5,500) / 2,000
Predetermined manufacturing overhead rate= $33.1 per direct labor hour
