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Andru [333]
3 years ago
13

Which one of the following is an example of a sunk cost?

Business
1 answer:
Tresset [83]3 years ago
3 0

While choosing the projects various relevant costs are to be considered.Sunk cost is one of such costs. sunk costs are costs which has already been incurred.The money has been spent and it will not be recovered.sunk costs are irrelevant and are not take into consideration while making decisions.

Answer and Explanation:

(a) Incorrect

Sales lost is not sunk cost. sales lost due to out of stock inventory is because of wrong decision and mismanaged inventory stock.

(b) Correct

Repair cost incurred and paid cannot be recovered back. it is not relevant for decision making as the cost has already been incurred.

Hence, it is a sunk cost.

(c) & (d) Incorrect

When one alternative is selected over another, there may be a loss of gain from t he project forgone. such gain which lost is called opportunity cost. (d) & (e) is opportunity cost.

(e) incorrect

increase in sale is increase in income. it is not a cost.

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The organizational culture of a public agency consists of
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The organizational culture of a pubic agency consists of the relationship it has with the public it serves.
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3 years ago
The Jackson-Timberlake Wardrobe Co. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at
docker41 [41]

Answer:

The current price is $34.40

The price be in three years is $38.70

The price in 15 years is $61.95

Explanation:

In this question, we apply the Gordon model which is shown below:

= Next year dividend ÷ (Required rate of return - growth rate)

where,  

Current year dividend

For one year

= $2.15 × (1 + 4% )

= $2.15 × 1.04

= $2.236

The other items rate would remain the same

Now put these values to the above formula  

So, the value would equal to

= 2.236 ÷ (10.5% - 4%)

= $34.40

The price is three years would be

= $34.40 × (1.04) ^ 3 years

= $34.40 × 1.124864

= $38.70

The price is 15th years would be

= $34.40 × (1.04) ^ 15 years

= $34.40 × 1.8009435055

= $61.95

7 0
3 years ago
ginger's baby weighed only 3 3/8 pounds when it was born. the doctor said it could not leave the hospital until it weighed 5 1/2
Jet001 [13]
It must gain 1.375 pounds more before it can leave.
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Dividends received are classified as operating activities cash flows, while dividends paid are classified as financing activitie
melomori [17]

Answer:

1) cash on hand (bank) - operating acitivites 2) cash on hand (bank) - finance activities

Explanation:

Dividends received increases the amount of cash flow available. Thus on the statement of cash flows it's recorded as an inflow of cashflow under operating acitivities.

Dividends paid are viewed as financing activity and since it's an outflow of cash (money leaving the entity) it is recorded as decrease in finance activities.

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3 years ago
The main elements of the accounting are 1)Recording 2)classifying 3)summarizing 4)all of these
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Answer: D

Explanation: the definination of accouting includes the process of recording, classifying, summarizing the transactions.

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