<u>Answer:</u> Sunk cost
<u>Explanation:</u>
Sunk cost means the expense which has been already met by the firm and they cannot be recovered at any rate. Sunk costs are not based on the future decisions as these expenses for the firm are the same irrelevant to the project which it is assigned. Sunk costs are not a part of the budget plan.
In the given scenario the delivery company has spent $3500 in order to upgrade the truck. So $3500 is treated as sunk cost in the proposed project.
Answer:
True
Explanation:
For instance, for a car importer to become compliant, the importer must show that it exercised reasonable care in the filing of its Customs entries—by following a standard of behavior set by the law. Which includes hiring a customs specialist
Answer:
1. P = $156,560; Q = $203,440
2. P = $90,320; Q = 149,680
3. P = -$43,500; Q = $3,500
Explanation:
The explanation is given in images for each situation:
Answer:
A. Offers ways for a firm to realize 1+1 = 3 benefits because the value chains of the different businesses present competitively valuable cross-busniess relationships.
Is a process that take place when a business expands its activities into product lines that are similar to those it currently offers.
Answer:
The answer is A.
Explanation:
Opportunity cost is the cost of an action that was not chosen or selected. It is also the cost of alternative forgone. For example, Mr A has two choices - taking employment of $20,000 per annum or being self-employed (setting up a farm that will generate $25,000 per annum). He decides to go for farming. The opportunity cost here is the cost of taking the employment ($20,000).
Opportunity cost is relevant in decision making. Companies use opportunity cost when making strategic or tactical decisions. There must be an alternative to every decision which must be considered before making a decision.
Though opportunity cost is a relevant cost but it is never shown on financial statement. It is never part of financial records.
