Answer: Cost reimbursement contracts.
Explanation:
In this type of contract the customers most times demands that at regular time Interval and through out the duration of the project a contractor compares the real expenses with the proposed budget and estimated cost upon completion with the initial estimated price.
It is also known as cost plus contract. The contractor who handled the project are refunded every cost they incur while executing the project, this comes with additional fees.
Answer: This means: "d. Your economic profit has gone down and your accounting profit has stayed the same."
Explanation: The difference between the accounting and economic benefit is associated with the type of cost that each includes:
The accounting benefit is nothing more than the difference between income and cost. In this case it is still $50000.
The economic benefit includes not only explicit costs. The economic benefit is the difference between income and total costs (explicit and implicit). Therefore, this benefit is less than the accounting benefit. Because in this case the cost of working at home is considered.
Answer: E. The firm's ability to differentiate its product
Explanation:
The factor under the control of owners and managers that make a firm successful and allow it to earn economic profits is the firm's ability to differentiate its product.
Product Differentiation has to do with making a product unique from that of its rivals so that it'll be attractive to the customers and the target market. This will slow be vital for the company to produce at a average cost that is lower than that of its competing firms. This will help the company to have a competitive edge over others.
Answer:
$206,080
Explanation:
Total conversion costs transferred out of the Canning Department:
= Units Completed and transferred out * Cost per equivalent unit
= 56,000 * $3.68
= $206,080
So, the total conversion costs transferred out of the Canning Department equals $206,080
Answer:B - Are difficult to manage because there are few options
Explanation: Bottlenecks buy is the purchase of products that have limited manufacturers as well as distributors. This process is a difficult one as its always very difficult to decide on immediate action because of the unreliability of the manufactures/distributors of the products.
