Answer:
a. True
Explanation:
The process by which management plans, evaluates, and controls investments in fixed assets is called capital investment analysis. This process is also known as capital budgeting.
Generally, capital investment analysis or capital budgeting is used by business firms or governmental agencies to assess and measure the profitability of a long-term investment on a fixed asset such as real estate, machinery or factory equipments etc.
Hence, the management is able to choose the best option for investment after an assessment of which investment would yield a higher level of profits.
Answer:
The planned purchases are given as $34,500 while the value of OTB is $28,900
Explanation:
The Planned purchases is given as
Planned Sales + Planned Markdowns + Planned End of Month Inventory - Planned Beginning of Month Inventory = Planned Purchases
So here the planned sales are 25000
The planned Reductions are 1500
The End of Month inventory is 88000
The Beginning of Month Inventory is 80000 So the value is given as
25000+1500+88000-80000= Planned Purchases
Planned Purchases =34500
The OTB is given as
OTB=Planned Purchases-Commitment
OTB=34500-5600
OTB=28900
The aggregate demand curve shows a relationship between aggregate price level and demand at the given spending growth.
<h3>What is demand?</h3>
Demand is explained as the requirement of a certain product in the market, usually this demand is varied if the prices are changed and the demand also is impacted by the supply.
If the prices are high it is highly likely that the demand of that product will reduce if the product is not a necessity.
If the prices are lower the demand for the product will increase.
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The organization will continue to try to balance profit and social goals.
The primary reasons why companies are in business is to make profit. However, a company must be responsible in terms of performing corporate social responsibility to the community where it operates.
Contributing to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically-oriented is what is meant by corporate social responsibility.
However, where an organization is faced with heavy losses, it must continue to balance profit and social goals. When the company makes profit, then salaries will be paid, social goals will be fulfilled.
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Answer:
Variable cost per unit= $1.5
Fixed costs= $2,000
Explanation:
Giving the following information:
Miles Driven Total Cost
January 10,000 $17,000
February 8,000 13,500
March 9,000 14,400
April 7,000 12,500
<u>To calculate the variable and fixed costs under the high-low method, we need to use the following formula:</u>
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (17,000 - 12,500) / (10,000 - 7,000)
Variable cost per unit= $1.5
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 17,000 - (1.5*10,000)
Fixed costs= $2,000
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 12,500 - (1.5*7,000)
Fixed costs= $2,000