Answer: D. develop short-term operating strategies
Explanation:
Capital budgeting simply refers to the process that is used by a business in order to determine the fixed asset purchases that is proposed which it should accept, or not. It's typically done in order to select the investment that's most profitable for a company.
Some of the capital budgeting processes include:
• Identification and analysis of potential capital investments.
• Application of capital rationing
• Performing post-audits
It should be noted that developing short-term operating strategies is not part of the capital budgeting process. Therefore, the correct option is D.
Answer:
Minimum transfer price= $30
Explanation:
The transferring division, Division X currently has excess capacity which is equal to
<em>The total capacity - external sales = 40,000 - 35,000 = 5,000 units</em>
This implies that it can meet the sales request of division Y from the excess capacity without any opportunity cost.
In this situation, where the there is no opportunity cost associated with transfer, the minimum transfer price would be :
Minimum transfer price ≥ unit variable cost
Note that unit variable cost is $30.
<em>The unit variable cost of $30 represents the relevant cost per unit of producing a unit</em>
Minimum transfer price= $30
A price between $30 and $48 would be acceptable to both divisions
Answer:
To understand how democracy developed in ancient Greece, you must examine the polis, which was the Greek word for a city-state. The Greeks shared a language and culture, but each polis had a different government. In 509 BCE, Athens created a new set of rules that gave power to the people. The Greeks called this government democracy. Members of the Council of 500 were chosen randomly.
Answer:
external stakeholder
Explanation:
External Stakeholders are the individuals or the groups of the individuals who are outside a particular project or business, but they can affect or they can be affected by the project or business.
In the case case study, Widgets Inc. acts as a vendor for the appliance manufacturing company by supplying machine parts. Widgets Inc. is outside the appliance manufacturing company but is affected by the company as its revenue depends on the appliance manufacturing company. Thus, Widgets Inc. is an external stakeholder for appliance manufacturing company.
Based on the amount that Ramirez guaranteed the lessor and the estimated residual value, the amount to be added to the right-of-use asset is $1,434.33.
<h3>What amount should be added to the right-of-use asset?</h3>
This would be the present value of the difference between the guaranteed amount and the estimated residual value.
= 42,300 - 40,200
= $2,100
Present value:
= 2,100 / (1 + 10%)⁴
= 1,434.328
= $1,434.33
In conclusion, the right-of-use asset amount to be added is $1,434.33.
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