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3 years ago

Which of the following is a fixed cost?

Business

1 answer:

Mice21 [21]3 years ago

3 0

Answer:

The answer is d. payment to hire a security worker to guard the gate to the factory around the clock.

Explanation:

Let re-visit to the concept of Fixed cost before applying to the questions.

Fixed costs are costs which are unchanged given changes in production level.

a. payment to a electric utility is not fixed cost because higher level of production required higher electricity consumption which leads to higher cost of electricity.

b. cost of raw material is not fixed cost because the higher the production level, the higher the raw material required for production.

c. wages to hire assembly line workers is not fixed cost because the higher the production level, the more workers required and the higher the wages will be.

d. payment to hire a security worker to guard the gate to the factory around the clock is fixed cost because regardless of the production level, the security worker will work for the same amount of time and receive the same level of payment as his workload is much likely to remain the same.

So, d is the correct choice.

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Sam has saved $30 per week to buy a new Blu-Ray player. He compares two different models: a Panaview that is priced at $130 and

mr Goodwill [35]

Answer:

Sam can easily determine that the Panaview model has a lower price than the Zony model. ⇒ UNIT OF ACCOUNT

Sam saved $30 per week. ⇒ STORE OF VALUE

Sam pays $140 for the Blu-Ray player. ⇒ MEDIUM OF EXCHANGE

Explanation:

The four main functions of money are:

it serves as a unit of account: it provides a common measure of the value of goods and services being exchanged.
it serves as a store of value: money holds its value over time, so it serves as a store of value.
it serves as a medium of exchange: you can use money to purchase goods and services
it serves as a standard of deferred payment: money serves as a way of valuing a debt, so you can acquire goods now and pay for them later.

4 0

3 years ago

In which one of the following instances is rivalry among competing sellers notmore intense?

dimaraw [331]

Answer: E.When there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members

Explanation:

The more the number of players in an industry the more it gets congested and especially for the competing sellers. The decision for increasing or reducing price is met by follower firms to do the same thing. It gets less competitive because you know all the players in the industry would be following the same practices and doing the same thing.

7 0

3 years ago

A private university is made up of various "schools," such as the School of Journalism, the School of Business, the School of La

Oxana [17]

Answer:

The correct answer is D

Explanation:

SBU stands for Strategic business unit , it is a profit center whose focus is on the product offering and the market segment. It is usually have a marketing plan which is discrete, marketing campaign and analysis of competition, though it is a part of larger business entity.

So, the private university facing financial problems, they decided to become a profit center. Therefore, this scheme is parallel to SBU which is Strategic business unit.

6 0

3 years ago

Unique corp. had 50,000 shares of $5 preferred stock, $100 par, and 100,000 shares of $1 par common stock outstanding throughout

goldenfox [79]

50,000 x 5 = $250,000 Preferred Dividends
(780,000 - 250,000) / 100,000 =
b.$5.30

5 0

3 years ago

Henrietta, the owner of a very successful hotel chain in the Southeast, is exploring the possibility of expanding the chain into

klio [65]

Answer:

Total deduction for the year = $48,956

Explanation:

You can deduct investigation expenses but only for new business that is in the same industry as your current business. In this case, Henrietta incurred in $42,500 expenses trying to expand her hotel business. Total deduction for the current year = $42,500.

If the investigation expenses are not related to your current business, e.g. restaurants, then you can capitalize the costs and amortize them only if you actually carried out the expansion.

You can deduct up to $5,000 during the first year but this amount decreases by $1 for every dollar above $50,000. Total immediate deduction = $4,400. The remaining $46,200 must be amortized over 180 months. Amortization per month = $46,200 / 180 = $257

Total amortization for year 1 = 8 months x $257 = $2,056

Total deduction for the year = $42,500 + $4,400 + $2,056 = $48,956

7 0

4 years ago