Answer:
Company A
a. Differential Analysis dated May 29
Alternative 1 Alternative 2
Opportunity cost $250,000 $550,000
Variable production costs 580,000 192,000
Total cost $830,000 $742,000
b. Sunk cost in this situation is: $225,000 ($400,000 - $175,000) cost of the old machine.
Explanation:
Company A's relevant cost for the old machine is the opportunity cost that it will lose if it continues with Alternative 1 or continued use of the old machine and the additional cost for the new machine for Alternative 2. Also relevant is the variable production costs that would be incurred if the old or new machine is used.
Company A's sunk cost is the cost of the old machine minus accumulated depreciation. Sunk cost is not relevant for decision making under differential analysis.
Company A's differential analysis is a managerial tool that is used to differentiate one decision alternative from another. In this analysis, only relevant costs are considered. A relevant cost in this case is cost that its inclusion or elimination makes a difference in the decision outcome.
Answer:
E. If a coupon bond is selling at par, its current yield equals its yield to maturity
Explanation:
At par means at face value. A bond may sell at par, below par or above par. A bond that trades at par has a yield that is equivalent to its coupon. Investors expect to have a return that is equal to the coupon for the risk of lending to the bond issuer.
The coupon rate of a bond is equal to its yield to maturity if the purchase price is equal to its par value or face value.
From the paragraph above, this makes option E the best answer for the question.
Answer: Stakeholder
Explanation:
A stakeholder is a person, group or organization that has an interest, concern in an organization, can affect and be affected by the organization's activities, objectives and policies. A stakeholder is a party that has an interest or has influence or power that can impact the success of a company and can either affect or be affected by the business. The primary stakeholders in a typical corporation are its investors, employees, customers, and suppliers.
These kind of expenses are under the capital costs. Capital costs are fixed costs acquired when you build the establishment in order to make it commercially operable. For example, when you want to open up your own clinic, you would have to build your own office and spend money to buy medical equipment and their installation costs. Moreover, you would have to spend on legal works to register and acquire your business permit. These costs are one-time only and incurred at the early stages of your milestones.
Answer:
The Correct Options are "1" and "3"
Explanation:
- An MRP method is employed to arrange the fabric needed for manufacture and dispatch. Its accustomed make sure that material is on the market for fabrication and merchandise are accessible for dispatch. For this designing request predictions are mandatory to stay the required material in order that product will be made on time and also the production method doesn't get halted. Therefore possibility one is correct.
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In a pull method the material is made on request and for this simply in phase is incredibly necessary, therefore the association should be adapted to Just in time method and therefore possibility three is correct.
- In a Kanban method stream of knowledge is vital for correct operational of offer restraint and for this each section ought to add agreement with the alternative sections and therefore the assumed possibility is false.
