Answer:
C. 4.93 percent
Explanation:
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity. The value of the annuity is also determined by the present value of annuity payment.
Formula for Present value of annuity is as follow
PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]
Where
P = Monthly receipt = $1,225
n = number of period = 30 years x 12 month each year = 360 months
As we already have the present value of annuity we need to calculate the rate of return.
$230,000 = $1,225 x [ ( 1- ( 1+ r/12 )^-360 ) / r ]
r = 4.93
true.
Explanation:
because decantralization means encourages upper level management to concentrate on short term decisions
Answer:
The correct answer is Opportunity cost.
Explanation:
The opportunity cost is understood as the cost incurred in making a decision and not another. It is that value or utility that is sacrificed for choosing an alternative A and neglecting an alternative B. Taking a path means that the benefit offered by the discarded path is waived.
In any decision taken there is an implicit waiver of the utility or benefits that could have been obtained if any other decision had been made.
For each situation there is always more than one way to address it, and each form offers a greater or lesser utility than the others, therefore, whenever one or the other decision is made, the opportunities and possibilities offered by the others will have been renounced, that may be better or worse (opportunity cost greater or lesser).
Answer:
The correct answer is C
Explanation:
Liabilities is the legal financial debts or the obligation of the company which arise during the course of the operations of the business.
The debit increases the following accounts which are expense or the assets accounts. And decreases the equity, liability and revenue accounts.
In other words, the accounts which are decreased through debits are the liabilities which involve Interest Payable, Notes Payable and Accounts Payable. And Stockholders' Equity which involve retained earnings and common stock.
Answer:
Unitary cost= $84
Explanation:
Giving the following information:
Direct material used $12
Direct labor 18
Variable manufacturing overhead 25
Fixed manufacturing overhead 29
<u>The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead. </u>
Unitary cost= 12 + 18 + 25 + 29
Unitary cost= $84