Answer:
Vertical growth
Explanation:
Vertical growth occurs when a company sets up operations and distribution channels for a new product. There is an expansion from its traditional product offering.
Vertical growth aims to increase control of distribution and suppliers and scaling of product within existing line of production.
Ford motor's initiative in setting up its River Rouge Plant outside of Detroit so that iron ore could enter into one end of the plant and a finished automobile could exit out of the other end is vertical growth.
Answer:
The answer is "21%".
Explanation:
The calculation for this question is define in attached file please find it.
Answer:
To execute new strategy
Explanation:
Firms and organisations on a quarterly or yearly basis try to change their business strategies to improve revenues and to compete in the market. Overall, implementing a new strategy is complex and it is important to perform restructuring in order to effectively apply a strategy. A restructuring process helps to easily adopt a strategy without complexities.
Answer:
C. $25,960
Explanation:
Cost of asset includes all the cost involved to acquire and install the asset. In simple term all the costs that are necessary to make the asset usable are capitalised and added to the cost of the asset.
In this question stamping machine has following cost which need to be capitalised.
Discounted Price = $24,000 x ( 100% - 3% ) = $24,000 x 97% = $23,280
Transportation cost = $550
Sales Tax = $1,680
Installation cost = $450
Total cost to be capitalized = $23,280 + $550 + $1,680 + $450 = $25,960
Routine Maintenance cost is the routine / period cost which incur every month, It is not necessary to make the asset usable and it is incurred after the asset is used.
