Answer:
Sunk costs.
Explanation:
Sunk costs refers to historical funds spent or incurred that cannot be recovered. Such costs are considered irrelevant during decision making which impacts on the business's future as they present no influence on present or future prospects.
Example
ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.
Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.
Hence, money that has been or will be paid regardless of the decision whether to proceed with the project is sunk costs.
Answer:
1. A basic finding of labor economics is that workers who have more experience in the labor force are paid more than workers who have less experience (holding constant the amount of formal education). True
2. This might be the case because people with more experience have usually had more on-the-job training. True
3. Some studies have also found that experience at the same job (called job tenure) has an extra positive influence on wages. Job tenure is valuable because people gain <u>job-specific knowledge</u> that is useful to the firm.
Explanation:
A worker with more experience means more on-the-job training, this drastically increases the worker's value of the marginal product of labor.
You need to know how many hours it took these workers to make the rugs to determine the labor cost.
Answer:
$4,000
Explanation:
Preparation of the journal entry.
Based on the information given we were told that The indirect materials totaled the amount of $4,000 which means that the appropriate journal entry to record this requisition would include a DEBIT TO MANUFACTURING OVERHEAD of the amount of $4,000.
(To record requisition)
Answer: Option (C)
Explanation:
Sociological factors are referred to as or known as elements or factors of the society that tends to radiate negative and positive influence which cause a change in function, structure, elements, and orientation. Sociology tends to mostly study society in regards with its elements, structure, and their development which mostly includes numerous factors such as people and the population, ethnicity, age, gender, religion, view , culture, and etc.
