Answer:
The chosen option (considering enrollment costs and opportunity cost) is:
b) College course.
Explanation:
a) Data and Calculations:
Costs/Benefits
College Course Community Course
Cost $2,600 $1,390
Opportunity costs -2,080 2,080
Net costs $520 $3,470
Distance to course 0.40 miles 16 miles
(walking distance) (driving distance)
Timing of course Weekday Weekend
Number of meetings 16 8
b) With the College course option, you will earn $2,080 ($260 * 8) weekdays to offset part of the enrollment cost. With the Community course option, $2,080 will be lost in opportunity cost, thereby increasing the total costs incurred. These costs are apart from the driving costs associated with traveling 16 miles to the Community Course at the local library.
Answer:
Equivalent annual cost method
Explanation:
Equivalent annual cost method is a method used to choose between two projects with an unequal life span
The decision rule is to choose the product with the higher Equivalent annual cost
Equivalent annual cost method is better for making this decision because if net present value is used, the project with the higher useful life would be chosen. this does not mean it is more profitable
All of these are costs of nonconformance rework and repair, scrap, liability judgments except<u> </u><u>training.</u>
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What does liability mean?
A person's or organization's financial responsibility for any losses or damages caused to another person or organization is referred to as "liability" in law. It generally refers to the responsibility to pay for any damage caused by one's own actions or negligence.
What does Organization mean?
Organization is the process of structuring and coordinating the activities of people and resources in order to achieve a goal or set of goals. It entails establishing or creating distinct lines of authority, responsibilities, communication, and decision-making. Setting goals, planning, controlling resources, and assessing progress are all part of the process.
Therefore the option A. <u>training</u> is the correct option.
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The depreciation cost per unit is $3.
<h3>What is the depreciation cost per unit?</h3>
Depreciation is the process used to expense the cost of an asset. Depreciation is the reduction of the carrying value of an asset. Depreciation occurs as a result of the wear and tear of an asset.
The depreciation cost per unit can be determined by dividing the total deprecation by the units manufactured by the company.
The depreciation cost per unit = depreciation cost / units manufactured
$6000 / 2000 = $3
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Answer:
0.37%
Explanation:
Since the expected payout ratio and earning per share is given, so we compute the current dividend which is shown below:
= Earning per share × payout ratio
= $2.75 × 70%
= $1.925
Now the cost of retained earning would be
= Current year dividend ÷ price + Growth rate
= $1.925 ÷ $45 + 0.06
= 10.28%
And, the cost of new stock would be
= Current year dividend ÷ price × (1 - flotation cost) + Growth rate
= $1.925 ÷ $45 × (1 - 0.08) + 0.06
= 10.65%
So, the exceed cost would be
= 10.65% - 10.28%
= 0.37%