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DENIUS [597]
3 years ago
8

A firm will shut down in the short run if the total revenue that it would get from producing and selling its output is less than

itsa.opportunity costs.b.fixed costs.c.variable costs.d.total costs.
Business
1 answer:
maxonik [38]3 years ago
3 0

Answer: A firm will shut down in the short run if the total revenue that it would get from producing and selling its output is less than its C. variable costs.

Explanation: A variable cost is a cost that will vary depending on the level of output that is needed. If more units of an item are needed, the variable costs will likely rise whereas if the product numbers go down, they will too. A variable cost changes and a fixed cost stays the same regardless of the production amount.

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It is important to identify and use only incremental cash flows in capital investment decisions:A) because they are the simplest
abruzzese [7]

Answer:

C) because ultimately it is the change in a firm's overall future cash flows that matter.

Explanation:

Under capital budgeting decisions, decisions are made with respect to addressing the questions like what is the benefit of selecting the project and investing on it.

If the answer to above question is raised income, then the project is selected. Accordingly the raised income in cash terms will be measured by increase in cash flows, that is incremental cash flows.

In simplest terms additional cash flows.

8 0
3 years ago
Roland Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2016 for $10,0
Anuta_ua [19.1K]

Answer:

Consider the following calculations

Explanation:

Answer:(a) Carrying value of asset: $10,000,000 - $2,500,000 = $7,500,000.

($10,000,000 ÷ 8) x 2 = $2,500,000

Future cash flows $6,300,000

Carrying value $7,500,000

Impairment entry:

Loss on Impairment A/C Dr. $1,900,000

      To Accumulated Depreciation A/C    $ 1,900,000

(7,500,000 - 5,600,000 = 1,900,000)

(b) Depreciation Expense A/C Dr. $ 1,400,000

           To Accumulated Depreciation A/C $ 1,400,000

($5600000/4=$1400000)

(c ) No depreciation is recorded on impaired assets to be disposed of.

Recovery of impairment losses are recorded.

Loss on Impairment A/c Dr. $1,900,000

      To Accumulated Depreciation A/C    $ 1,900,000

12/31/2015 Accumulated Depreciation A/C Dr. $ 300,000

                                          To Recovery of Impairment Loss A/C $ 300,000

5 0
3 years ago
When he became the president of Jem Incorporated, John Smith changed the date of the weekly payday from the end of the day on Mo
vladimir2022 [97]

Answer: $1.3 million

Explanation:

Based on the information given in the question, if this change delayed check clearing by 1 week, then the annual savings that were realized will be:

= Weekly payroll × Cost of short term funds

= $10 million × 13%

= $10 million × 0.13

= $1.3 million

Annual savings realized is $1.3 million.

6 0
2 years ago
LO 3.4A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell they sell two units of M
dexar [7]

Answer:

The sales mix is 1:2.

                           Model 101          Model 102

Selling Price                       21             56

Variable Cost              -14            -35

Contribution Per Unit       7               21

Multiply Sales Mix Ratio       1               2

Weighted Contribution       7                      42

Now add the weighted Contribution to compute Contribution margin per composite unit which is 7+42=$49

Explanation:

I assumed that the cost and selling price here for Model 101 is $14 and $21 respectively. Similarly the cost and selling price of Model 102 is $35 and $56 respectively.

Remember that Contribution margin per composite unit means that we will earn 49 dollars(combined contribution of sales mix) if we sell the sale mix of Model 101 and 102 which is 1:2.

6 0
3 years ago
If a business offers both routine and specialized​ services, a single cost driver rate will​ overprice: A. the specialized servi
Svetlanka [38]

Answer:

D. the routine service.

Explanation:

Single cost driver rate: It is a cost assigned to each unit of cost driver activity directly. Cost driver also influence other business activity and effect the total cost incurred.

In the given case, Business offer both routine and specialized service, as we know single cost driver influence driver directly, therefore, cost driver of specialized service will overprice the routine service.

6 0
3 years ago
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