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4 years ago

Life cycle costing (LCC):_______

Business

1 answer:

maw [93]4 years ago

7 0

Life cycle costing (LCC) includes all relevant costs expected in the first three years of ownership.

Option D

<u>Explanation:</u>

Life-cycle costing (LCC) is a method used to appraise the all out cost of proprietorship. It is a framework that tracks and aggregates the real expenses and incomes owing to cost object from its innovation to its relinquishment.

It enables near cost appraisals to be made over a particular timeframe, considering significant monetary elements both as far as introductory capital expenses and future operational and resource substitution cost.

Life-cycle costing is otherwise called all out cost of possession (TCO).

The way toward recognizing and archiving every one of the costs required over the life of an advantage is known as life-cycle costing (LCC).

The life-cycle costing procedure can be as basic as a table of anticipated yearly expenses, or as mind boggling as an electronic model that takes into account the formation of situations dependent on suppositions about future cost drivers.

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Find the accumulated value of $2,480 at the end of twelve years if the nominal interest rate was 2% convertible monthly for the

dusya [7]

In order to properly tackle this problem, we must understand the relationship between the nominal annual rate and real (effective) annual rate.

To do this:
-First you take the nominal rate, divide by the number of times it's compounded (converted) per year.
-Then, add one to that number, and raise that number to the power of how many times you compound per year.

Here is the method in practice:
First 3 Years:
Nominal rate= 2% ÷ 12 times/yr = 0.001667
Effective rate = 1.001667 ^12 = 1.020184

Next 2 Years (Discounting)
3% ÷ 2/yr = .015
1.015 ^ 2 = 1.061364

Next 4 years (Interest)
.042 ÷ .5 (once every 2 years) = .084
1.084 ^ (1/2) = 1.041153

The last 3 years are already expressed as an effective rate, so we don't need to convert them. The annual rate is:
1.058

I kept the 1 in the numbers (1.058 instead of 5.8% for example) so that it's easier to find the final number

Take every relevant number and raise it to the power of the number of years it's compounded for. For discounting, raise it to a negative power.
First 3 years: 1.020184 ^ 3 = 1.061784
Next 2 years: 1.030225 ^ -2 = .942184
Next 4 years: 1.041163 ^ 4 = 1.175056
Last 3 years: 1.058 ^ -3 = .84439

Multiply these numbers (include all decimals when you do this calculation)
1.062 * .942 * 1.175 * .844 = .992598

This is our final multiplier to find the effect on our principal:
.992598 * 2,480 = 2461.64

Answer is 2461.64

6 0

4 years ago

Harvey quit his job at State University, where he earned $45,000 a year. He figures his entrepreneurial talent or forgone entrep

ANEK [815]

Answer:

$60,000

Explanation:

Calculation to determine what The implicit costs of Harvey's firm in the first year were

First step is to calculate the Total revenue

Total revenue = 11000 × $75

Total revenue=$825,000

Second step is to calculate the Explicit cost

Explicit cost = 11000 × $55

Explicit cost= $605,000

Third step is to calculate the profit

Profit = $825,000-$605,000

Profit=$220,000

Now let calculate the Implicit cost

Using this formula

Implicit cost =Profit-(Amount earned per year +Forgone entrepreneurial income+Bond at 10% interest per annum)

Let plug in the formula

Implicit cost=$220,000-[$45,000+$5,000+($100,000+10%*$100,000)]

Implicit cost=$220,000-[$45,000+$5,000+($100,000+$10,000)]

Implicit cost=$220,000-($45,000+$5,000+$110,000)

Implicit cost=$220,000-$160,000

Implicit cost=$60,000

Therefore The implicit costs of Harvey's firm in the first year were $60,000

3 0

3 years ago

Measuring the price of gasoline in dollars per quart, an economist calculates the price elasticity of demand to be 1. What would

mezya [45]

Answer:

the same

Explanation:

it doesn't matter what was the original price elasticity of demand that the economist calculated in the first place, but if he/she changes the metrics, it wouldn't change the answer at all.

Price elasticity of demand measures the percentage change in the quantity demanded of the product over the percentage change in the price of the product.

The percentage change is measured in %, not in dollars, gallons, quarts, pints, tons, inches, etc.

5 0

3 years ago

Briefly describe the function of legislatures and the main difficulties they may experience in carrying out these functions. Cou

Tomtit [17]

Answer:

The main function of the legislatures is to make laws and establish guidelines and other statutes that would establish peaceful co-existence among the peoples.

Explanation:

The main difficulties often experienced by legislatures when carrying out their functions are numerous, beginning with public criticism both positively and negatively, down to the diffferences that may arise in terms of reaching a consensus on any particular bill proposed by a legislator to the House.

Also, the idea of incompetency cannot be overlooked because some members of the House of legislature when assigned to a specific and unique functions are sometimes unable to deliver results as expected by the House and the people who elected them to this function.

Structural changes is one means to this challenges, if it is so necessary. As cited in the instance above, an incompetent legislator or committee should be reviewed, reenacted and competency implied in the appoint to such functions. By so doing,the functions of the legislature will experience less challenges and difficulties.

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3 years ago

Read 2 more answers

Barriers to trade reduce the amount of output that can be supplied by foreign companies and, as a result, cause prices in the ma

oksano4ka [1.4K]

Barriers to trade reduce the amount of output that can be supplied by foreign companies and, as a result, cause prices in the market to be higher than they would otherwise be. This results in consumers buying less

<h3>What are barriers to trade?</h3>

Barriers to trade refers as certain hurdles which restrict an individual or organisation to practice trade activity effectively. These barriers can be regulatory barriers, physical barriers and so on.

These trade barriers are launched to support small-scale business and introducing jobs in the industries to prevent unemployment.

These trade barriers results in high prices in the market due to reduce amount output supplied by foreign companies. This will result in less buying behaviour by consumer.

Learn more about barriers to trade, here:

brainly.com/question/19109348

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7 0

2 years ago