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qaws [65]
3 years ago
9

Azure Company uses the multiplier method to estimate hidden quality costs. The multiplier is determined to be 3, based on experi

ence. Accounting records show that the measured external failure costs are $330,000. Which of the following is the total external failure cost?
a. $110,000b. $330,000c. $339,900d. $990,000
Business
1 answer:
damaskus [11]3 years ago
3 0

Answer:

d. $990,000

Explanation:

The multiplier method assumes that the total external failure cost is a multiple of the measured external failure costs. In this case, based on experience, the company determined that the measured value must be multiplied by a factor of 3:

C=3* \$330,000\\C= \$990,000

Therefore, Azure Company's total external failure cost is $990,000

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On January 1, 2020, Danvers Company purchased a copy machine. The machine cost $800,000, its estimated useful life is 5 years, a
Elden [556K]

Answer:

The answer is $192,000

Explanation:

Double-declining-balance method is doubling the rate used.

To find the rate:

100percent÷5years

= 20%.

Doubling the rate:

20% x 2

=40%

Depreciation for December 31, 2020 is:

0.4 x $800,000

=$320,000.

Net book value of the asset at the beginning of January 1, 2021 is:

$800,000 - $320,000

$480,000.

Therefore, depreciation for December 31, 2021 is:

$480,000 x 0.4

=$192,000.

Therefore depreciation for December 31, 2021 is $192,000

4 0
3 years ago
How would the Security Market Line be affected, other things held constant, if the expected inflation rate decreases and investo
garik1379 [7]

Answer: a. The y-axis intercept would decline, and the slope would increase.

Explanation:

The security market line is simply refered to as the graphical representation of a CAPM which is the capital asset pricing model and it simply shows the market risk, of the securities in the market which is then plotted against the market return.

When the expected inflation rate decreases and the investors also become more risk averse, the Security Market Line would be affected, as the y-axis intercept would decline, and the slope would increase.

8 0
3 years ago
Shaun is a student who has received an academic scholarship to State University. The scholarship paid $14,000 for tuition, $2,50
Soloha48 [4]

Answer:

$ 8500 paid by the university

Explanation:

The dormitory fees are recorded as part of his gross income because it is a payments given to his services rendered which was counseling freshman on campus living. The dormitory fees gotten can be taxed for this reason unlike the scholarships received for tuition, fees, books can be excluded from gross income as they are required for the student courses.

8 0
3 years ago
Kendall is investing $3,333 today at 3 percent annual interest for three years. Which one of the following will increase the fut
Andreyy89

Answer:

Increasing the interest rate

Explanation:

Future values and interest has direct relationship, if the interest rate increase, the future values increase.

The only way the Future value is gonna increase is if the interest rate increases.

6 0
4 years ago
Problem 3.15 page 37 Consider an economy with a flat rate tax system Each dollar of income over $5000 is taxed at 20 Income belo
kozerog [31]

Answer:

Standard deviation of Tc is 1600

Explanation:

See attached file

6 0
3 years ago
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