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3 years ago

How do organizations calculate various costs, and what do these calculations mean to business?

Business

1 answer:

QveST [7]3 years ago

8 0

Answer:

See the explanation section

Explanation:

Organizations calculate various costs with the help of the weighted average cost of capital. It is a significant cost measurement system through which organizations can calculate the cost of debt after tax, cost of new equities, cost of existing equities, and cost of preferred shares. WACC can be a benchmark for the organization. A firm needs to know those costs because it can make sure that whether those projects are running smoothly to continue or running worse to reject.

Another significant cost measurement method is the net present value. With the help of NPV, a business can make sure about a project to accept it or reject it.

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If you were trying to decide whether to take out an auto loan for $6500 to buy your first car, thereby allowing you to commute f

Ksivusya [100]

Answer:

Yes, Loan would meet our requirement to commute for an impressive summer internship program next year

Explanation:

Taking a loan would meet our requirement of buying a car. We will be able to make the downpayment. This will enable us to buy a car. So the decision to take the loan will be valid.

It will help us in commuting easily for the summer internship program. We will immediately get the car after making down payment and will avail of the benefits of using the car. This is a healthy type of debt.

8 0

3 years ago

Prepare a multiple-step income statement for Armstrong Co. from the following data for the year ended December 31. Sales, $755,0

Tatiana [17]

Answer:

See explanation

Explanation:

Armstrong Co.

Multi-step Income Statement

For the year ended, December 31, 20YY

Sales $755,000

Less: Cost of merchandise sold (330,000)

Gross Profit $425,000

Less: Operating expenses

Administrative expenses $35,000

Selling expenses $50,000

Total operating expenses $85,000

Income from operation $340,000

Other revenue and expenses:

Rent Revenue $25,000

interest expense ($30,000)

Total other revenues (expenses) $(5,000)

Income before taxes $335,000

Less: Income Tax 0

Net Income (loss) $335,000

That is the appropriate way to prepare a multi-step income statement

3 0

3 years ago

Select the incorrect statement regarding relevant costs and revenues. Group of answer choices Sunk costs are never relevant for

raketka [301]

Answer:

The incorrect statement regarding relevant costs and revenues:

To be relevant, a cost or revenue must not be future-oriented and must differ between the alternatives.

Explanation:

For a cost or revenue to be considered as relevant, it must be incurred or earned at a future time. It must also differ between the options available for decision making. A cost or revenue cash flow is relevant if it arises from a management decision and can be avoided. This simply means that if the cost or revenue is not affected by management decision or does not make any difference in decisions, it is not relevant.

6 0

3 years ago

Omicron Technologies has $50 million in excess cash and no debt. The firm expects to generate additional free cash flows of $40

Sergeu [11.5K]

Answer:

$4 per share

Explanation:

The formula to compute the regular yearly dividends in the future is shown below:

= Free cash flow ÷ outstanding shares

= $40 million ÷ 10 million shares

= $4 per share

It shows a relationship between the free cash flow and the outstanding shares

All other information which is given is not relevant. Hence, ignored it

5 0

3 years ago

Explain briefly features of creativity

yawa3891 [41]

Answer:

In conclusion we can say that if we want to run a creative activity in the classroom, we need to check for the presence of these four features: imagination, purpose, originality and value, and organise the process in a way that all these can be incorporated.

4 0

3 years ago