Answer:
Full cost is a pricing strategies which is most likely to lead to long-term financial sustainability
Explanation:
Full cost: It includes all types of cost which includes fixed cost, the variable cost which is used to compute the total cost per unit . where, fixed cost is that cost which remains same if production level also increases and, the variable cost is that cost which is changes when production level changes.
Marginal cost: It is the cost that is added when extra goods and services are produced.
Direct cost: It is that cost which is directly related to the production level. Example: direct material, direct labor, etc.
Indirect cost: It is that cost which is not related to the production level Example: Overhead cost, security cost, etc.
Variable cost: It is that cost which is changes when production level changes whether increase or decrease.
All other costs other than full cost is not used for long term financial sustainability because full cost includes all types of cost.
Hence, Full cost is a pricing strategies which is most likely to lead to long-term financial sustainability
Answer:
Year 2= $3,333.33
Explanation:
Giving the following information:
A company purchased a computer system for $24,000. The estimated useful life is 6 years, and the estimated residual value is $9,000.
To calculate the depreciation expense for the second year, we need to use the following formula for year 1 and 2:
Annual depreciation= 2*[(book value)/estimated life (years)]
Year 1= 2*[(24,000 - 9,000)/6]= 5,000
Year 2= 2*[(15,000 - 5,000)/6]= 3,333.33
Answer:
knowledgeable user
Explanation:
Knowledgeable user is a term that refers to particular users of a specific product, that must possess certain qualifications to use that specific product. In the case of knowledgeable users, the manufacturer of the product is not require to warn these users about the dangers of using their product.
In this case, Stan as an air conditioning and heating technician should know about the dangers of using electrical thermostats because of his profession.
Answer:
overhead
direct labor
direct materials
Explanation:
Process operations can be regarded as process manufacturing it can be explained as mass production method that is been followed when producing products following a continuous flow.
It can be regarded conveyer belt system which brings about production of identical as well as standardized item with fast rate as regards the speed. It should be noted that In a process operation, each process has a separate department which will accumulate costs for ;
✓overhead ( ongoing costs that is gotten in operation of a business)
✓direct labor
✓direct materials
Answer: 6.6%
Explanation:
The Pure Expectations Theory believes that the future long term rate is a reflection of future short term rates.
In terms of a 5 Treasury Security then, the rate of return to be expected is the risk free rate adjusted for inflation.
The Treasury Security has no risk but for inflation risk hence this is all that should be catered for.
Rate of Return on 5 year Treasury Security = Real Risk Free Rate + Inflation Rate
= 2.5% + 4.1%
= 6.6%
