Answer:
Recording fixed manufacturing overhead as element of the cost of plant assets constructed by a company for its own use:
a) When to exclude completely: During periods of low production activity, capitalization of fixed overhead costs would reduce the amount assigned to operational activities. This implies that profits will be overstated in some periods and understated in others.
b) When to include at the same rate as is charged to normal operations: To avoid misstatement of both plant assets and finished goods, it is important to allocate overhead costs at the same rate to plant asset construction as is done for normal operations.
Explanation:
Much of the fixed manufacturing overhead will be the depreciation costs for factory building and equipment. Sometimes, companies construct their plant assets internally. The problem arises when deciding whether to allocate fixed manufacturing overhead costs or not and when to allocate. The decision requires some thinking to decide when it is appropriate.
If the going rate of interest were 10 percent and the expected profit rate were 18 percent, then the opportunity cost of a firm carrying out a $100,000 project for one year with its own funds would be$10,000.
SO
$100,000/10 =$10,000
Opportunity cost is the advantage that was lost because a particular option was not selected.
It is necessary to weigh the advantages and disadvantages of each choice offered in order to correctly assess opportunity costs.
Opportunity costs have a value that can help people and businesses make more lucrative decisions.
Opportunity cost is a wholly internal expense that is only utilized for strategic consideration; it is not included in accounting profit and is not reported externally.
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Answer:
Option D is correct one.
<u>In Cobb-Douglas production, the return to scale depends on the sum of the exponents.</u>
Explanation:
It shows a production function passing through increasing returns to constant returns and then to decreasing returns.
The financial commitments and performance could be limiting in the long run because skills become obsolete, but problems are rarely solved.
Financial Commitments refers to all borrowing or raising commitments made to the Group at any time, including those for bonds (but excluding, for the avoidance of doubt, any bonding guarantees made in the normal course of business) and other debt, whether or not they are for cash.
A worker's skills become obsolete over time as a result of industrial restructuring or changing skill requirements in occupations and industries that rely heavily on technology (such as ICT, finance, and professional and scientific activities).
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Answer:
$37.79
Explanation:
The computation of the stock price is shown below:
Data given in the question
Next year dividend = $3.25
Growth rate = 3.5%
Required rate of return = 12.1%
So, the stock price is
= Next year dividend ÷ (Required rate of return - growth rate)
= $3.25 ÷ (12.1% - 3.5%)
= $3.25 ÷ 8.6%
= $37.79
We simply apply the above formula to find out the stock price
