Answer:
B)The cost of energy for a company can be both a fixed cost and a variable cost.
Explanation:
Energy is a fixed cost because it is an utility that companies have to pay regardless of the level of production; they need energy to function.
Energy is a variable cost because energy is an input to production, and the amount of energy used (and hence its cost) can vary a lot depending on how much output is produced. In the question, ethanol is referenced, which is also a type of variable cost, because it is an energy source that depends on another input (corn), and its used as a substitue for gasoline.
Answer:
Yes, the company is liable because Jamal was on his work route and took a minor detour to pick shirts he needed for work.
Explanation:
Generally what determines if the company is liable or not for a car accident, is if the employee was acting within the scope of his/her normal employment activities. In this case, even though Jamal took a break to pick up some shirts for work, he didn't deviate form his normal activities and not even from his normal work route. He was actually coming back from making a delivery.
It would have been different if he had gone to a different neighborhood or downtown just to pick the shirts. You must also consider that Jamal drives the delivery truck 10 hours a day, and that doesn't leave him a lot of spare time for his own personal activities, and this particular one was also related to his work.
This situation is similar to an accident happening when a truck driver is stopping to go to the bathroom or eating something while travelling.
Answer:
The answer is "Option C".
Explanation:
If options of different retained earnings are assessed, it must use the corresponding annual cost method for drawing a concrete conclusion. As per the task, which is defined in the attached file please find it.
Question:
When performing capital budgeting, __________ incurred by a project are irrelevant to future investment decisions.
A) Opportunity costs
B) Depreciation
C) Sunk costs
D) Taxes
Answer:
The correct answer is C) Sunk Costs
Explanation:
Capital Budgeting is the art (most applicable to corporate persons) of planning expenditure that will be incurred in the future, especially on long term assets.
The reason you cannot factor Sunk Cost into a Capital Budget is because of its very nature.
Sunk Costs refer to monies for items that have already been expended and can never be recovered. If it can never be recovered and has <u>already</u> been incurred, it has no role to play in future considerations especially when the purpose of Capital Budgetting is considered.
The primary purpose of a Capital Budget is that it helps to further evaluate the inflow against the outflow of an investment to check whether or not the return is acceptable.
Every other option given in the question above are items that have futuristic qualities.
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