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defon
3 years ago
5

n the cash flow information for the Ping Kings project, Ping spent $300,000 for research and development of the golf clubs. Ping

's tax rate is 40%. How much of this cost should be included in the initial (t = 0) cash flow for this project
Business
1 answer:
Gre4nikov [31]3 years ago
6 0

Answer: C. $0

Explanation:

When including initial costs in a project's cash-flow, the relevant costs are those that henceforth will be spent on the project. Sunk costs are not to be included because they have already been incurred and cannot be recovered.

Research and Development costs have already been incurred and so are sunk costs. Hence they are not to be included in the initial cash-flow for the project.

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Suppose that a perfectly competitive industry is in long-run equilibrium. Every firm is producing at minimum average total cost,
elixir [45]

Answer:

B. firms will exit the industry

Explanation:

When the firms is producing at the minimum average total cost, the amount of profit margin that they get tend to be high. This means that they can fulfill their target profit even by producing less amount of product.

Even when the demand in the market is decreased, Such firms will most likely accumulated enough profit to survive for a long period of time before they go bankrupt. This is why the firms is very unlikely to exist the industry in a short run.

7 0
2 years ago
Southern Industries uses job order costing. The following information was drawn from the Company’s monthly accounting reports: J
Vlad [161]

Answer:

The balance in the Work in Process inventory at the month end is $60

Explanation:

Work in Progress : It is a sum of direct material, direct labor and overhead expense. It shows how much percentage of work is left in the company. The work part left in the company is called work in progress.

For computing the Job 3 work in progress, the calculation part is shown below.

= Direct material + Direct labor + overhead expense

= $30 + $10 + 200% × 10

= $30 + $10 + $20

=$60

Hence, the balance in the Work in Process inventory at the month end is $60

8 0
3 years ago
Epsilon Co. can produce a unit of product for the following costs: Direct material $ 8 Direct labor 24 Overhead 40 Total costs p
omeli [17]

Answer:

If the company produces the units, it will save $4.

Explanation:

First, we need to calculate the relevant cost of making the units in-house. <u>We will consider only the incremental overhead cost:</u>

Make in-house:

Direct material= 8

Direct labor= 24

Avoidable Overhead= 40*0.6= 24

Total cost= $56

Buying:

Total cost= $60

If the company produces the units, it will save $4.

5 0
3 years ago
The theory of comparative advantage states that there are gains from trade if countries specialize and optimize their opportunit
Margarita [4]
In simpler terms, the theory of comparative advantage refers to the possibility of one given economic actor to produce the same good which is of the same size and quality. This becomes a force behind trade because there are specific materials that are found in specific area in the Philippines only.

Doing trading is I think  is better than being self-sufficient .
7 0
3 years ago
A company purchased a tract of land for its natural resources at a cost of $1,981,300. it expects to mine 2,170,000 tons of ore
muminat

Answer: $0.79

Given:

C=Cost of the land: $1,981,300

S=Salvage value of the land: $267,000

N=Total number of ores mined= 2,170,000 tons

To get the depletion expense per ton of ore:

(C-S)/N

=($1,981,300-$267,000)/2,170,000

=1,714,300/2,170,000

=$0.79


6 0
3 years ago
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