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melamori03 [73]
3 years ago
8

Collins Inc. is investigating whether to develop a new product. In evaluating whether to go ahead with the project, which of the

following items should NOT be explicitly considered when cash flows are estimated?
a. The project will utilize some equipment the company currently owns but is not now using. A used equipment dealer has offered to buy the equipment.
b. The new product will cut into sales of some of the firm's other products.
c. The company has spent and expensed for tax purposes $3 million on research related to the new detergent. These funds cannot be recovered, but the research may benefit other projects that might be proposed in the future.
d. If the project is accepted, the company must invest $2 million in working capital. However, all of these funds will be recovered at the end of the project's life.
e. The company will produce the new product in a vacant building that was used to produce another product until last year. The building could be sold, leased to another company, or used in the future to produce another of the firm's products.
Business
1 answer:
SVEN [57.7K]3 years ago
4 0

Answer:

The answer is a. The project will utilize some equipment the company currently owns but is not now using.

Explanation:

If you look at all the other options that are listed here, they either are a significant sum to the company or has a significant the opportunity cost. In this one, company uses idle assets and therefore bears no opportunity cost.

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Under market organization, individuals can communicate their preferences to other decision makers directly, through communicatio
salantis [7]

Answer:

B) False

Explanation:

The way the transaction takes place on the market is the Market Organization. Over time it's determined by a combination of factors: chance events (e.g., technical innovations, locations), financial and physical limitations (transaction costs, intelligence cost, manufacturing costs)etc.

8 0
3 years ago
The key to success for big and small businesses alike is
garri49 [273]

Answer:

acountability, kill bureaucracy before it starts - more functions, fewer departments, more “teams,” fewer committees, open lines of communication, the customer is everybody’s responsibility, never stop “re-inventing” the business.

Explanation:

8 0
3 years ago
A manager tells her production employees, "It's no longer good enough that your work falls anywhere within the specification lim
ololo11 [35]

Answer:

The answer is D. Taguchi concepts.

Explanation:

The Taguchi method of quality control is an approach to engineering that emphasizes the roles of research and development (R&D), product design and development in reducing the occurrence of defects and failures in manufactured goods.

6 0
3 years ago
If an increase occurs in the demand for the output of industry A, we would expect all of the following to happen except:A. an in
ruslelena [56]

Answer:

The correct answer is option B.

Explanation:

The total revenue and profits of the industry as the price level  increases with increase in the demand.

When there is an increase in the demand for the output of an industry, that industry will increase the production to match the increase in the demand. The increase in production will cause output level to increase.

In order to produce more output the industry will require more inputs, so the demand for inputs will increase.

An increase in the demand for inputs will be accompanied by increase in their prices.

There will not be any decline in the price of inputs.

3 0
3 years ago
The Maryville Construction Company occupies 105,800 square feet for construction of mobile homes. There are two manufacturing de
madam [21]

Answer:

$404,800

Explanation:

Calculation to determine How much rent is allocable to the assembly department using the direct method of allocation

Using this formula

Rent =Area used by Assembly department / Total Area used by Manufacturing Departments x Total Rent paid

Let plug in the formula

Rent =36,850/ (36,850+30,150) x $736,000

Rent=36,850/67,000*$738,000

Rent=0.55*$736,000

Rent= $404,800

Therefore How much rent is allocable to the assembly department using the direct method of allocation is $404,800

4 0
3 years ago
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