Emphasizing your qualifications or adding new information.
Most time, the marginal cost of the last unit produced equals the marginal revenue in order to ensure that the firm is maximizing profits.
<h3>When do firm maximize profits?</h3>
Most time, a firm will prefer to maximize profit in order tooIncreased its brand loyalty.
Most time, when a firm is able to cut prices and gain more customers, it will gain bigger exposure and brand loyalty and this will enables the firm to be more prominent in the market.
In costing, the the marginal cost of the last unit produced equals the marginal revenue in order to ensure that the firm is maximizing profits.
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Answer:
FV= $5,743,491.17
Explanation:
Giving the following information:
Present value (PV)= $1,000,000
Number of periods (n)= 30 years
Annual interest= 6% = 0.06
<u>To calculate the future value (FV), we need to use the following formula:</u>
FV= PV*(1+i)^n
FV= 1,000,000*(1.06^30)
FV= $5,743,491.17
Answer:
a. the difference between actual and budgeted fixed overhead costs.
Explanation:
As we know that
The variance is shows the difference between the actual amount and the budgeted amount or estimate amount
So, the total fixed overhead variance is the difference between the actual fixed overhead costs and the budgeted fixed overhead costs i.e to be fixed in nature
Hence, the first option is correct
Answer:
C
Explanation:
Capital budgeting are the methods employed by is the process that a businesses to determine which which investments to accept, and which should be declined.
Some of the capital budgeting methods are :
1. Net present value
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
2. Internal Rate of Return
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
3. Profitability Index
profitability index = 1 + (NPV / Initial investment)
4. Accounting rate of return = Average net income / Average book value
Average book value = (cost of equipment - salvage value) / 2
5. Payback period
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period = Amount invested / cash flow
6. Discounted payback period
Discounted payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative discounted cash flows
