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Alja [10]
3 years ago
15

Which costs will change with a decrease in activity within the relevant range? Select one:

Business
1 answer:
Harman [31]3 years ago
6 0

Answer:

The correct answer is option b.  

Explanation:

The fixed costs refer to that part of the cost of production which is not affected by the volume of activity. The total fixed cost remains constant in the entire production process.

The fixed cost per unit is the ratio of total fixed costs and the level of output. It increases with a decrease in level of activity.

The variable cost is the cost incurred on the variable inputs employed in the process of production. As the level of activity declines the number of variable factors employed will also decline. This will cause the total variable cost to decrease.

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g Hochberg Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool To
iogann1982 [59]

Answer: $2.81 per machine hour

Explanation:

Wages and salaries $ 423,000

Activity cost pools 10%

Allocated amount = 10% of $423000

= 0.1 × 423000

= $42,300

Depreciation = $112,000

Activity cost pools 10%

Allocated amount = 10% of 112,000

= 0.1 × 112000

= $11200

Occupancy 154,000

Activity cost pools 20%

Allocated amount = 20% of 154000

= 0.2 × 154000

= $30800

Total allocated amount = $42300 + $11200 + $30800 = $84300

The cost hour is the machine hour which is 30,000

Rate per machine hour = total allocated amount/machine hour

= 84300/30000

= $2.81 per machine hour

6 0
3 years ago
The 10-year bond of Crown Electronics is selling at $960 each. The bond has a coupon rate of 8% and par value of $1,000. The fir
stich3 [128]

Answer: 5.36%

Explanation:

The after-tax cost of debt refers to the interest that is paid on debt which is then less the income tax savings as a result of the deductible interest expenses.

When calculating the after-tax cost of debt, the effective tax rate of a company should be subtracted from 1, after which the difference will be multiplied by the cost of debt. This will therefore be:

= Rate (10,8% × 1000, -960 + 20, 1000) × (1-40%)

=5.36%

6 0
3 years ago
Carlos is a salesperson for an industrial equipment company. Carlos calls on manufacturers and spends most of his time talking w
Andru [333]

Answer:

The correct answer is letter "A": Determining other purchase decision influencers.

Explanation:

While engaging prospective buyers into a purchase, salespeople should be aware of what the consumer is looking for. Different consumers have different preferences such as <em>price, brand, quality, technical features, </em>or <em>useful life</em>. Then, once the <em>purchase decision influencer</em> has been identified, clerks must focus on that characteristic to attempt closing the sale.

Thus, <em>Carlos must review his sales speech and pay special attention to what customers are looking for to determine which purchase decision influencer they are related to.</em>

5 0
4 years ago
1. Standard Oil of Connecticut, Inc., sells home heating, cooling and security systems. Standard schedules installation and serv
Yuki888 [10]

Answer:

The installers and experts are self employed because;

  • Standard Oil of Connecticut, Inc has no influence over the work other than finishing the venture by a specific time and the installers and experts can pick the days wherein they need to work.  
  • The installers and specialists are occupied with various business as the business is into deals and The installers and experts are into administration.  
  • The work isn't done heavily influenced by business. Professionals and installers are not managed by Standard Oil of Connecticut, Inc and they don't assess their work.  
  • The devices are not given by the business and the installers and experts utilize their own gear and instruments.  
  • The installers and experts are utilized for a specific time-span till the fulfillment of the undertaking and are not utilized for long.  
  • The strategy for installment is through a set rate for every venture and not by time-frame.  
  • The installers and professionals are authorized and affirmed by the state and are having particular abilities which are not increased through the business.  

Every one of these conditions fulfill the necessities of self employed entity as indicated by measures utilized by the courts and doesn't fulfill the standards of representative.

5 0
3 years ago
Jung Hwa was recently married on July 1, 2018. She had worked for the organization for the past eight years and has been covered
lys-0071 [83]
Now that’s what she should do but if she doesn’t what to then oh whale
6 0
3 years ago
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