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3 years ago

Kristen Lu purchased a used automobile for $16,750 at the beginning of last year and incurred the following operating costs:

Business

1 answer:

Molodets [167]3 years ago

4 0

Answer:

The average operating cost is $0.46 per mile

In deciding whether to to her use her own car or rent a car the costs are analysed below:

Variable operating cost is a relevant cost

Depreciation is not relevant as it is already cost and also it is sunk cost

insurance is not relevant as well

automobile tax and license is not relevant as it would be paid regardless of the option chosen

Explanation:

The average cost comprises of the variable operating cost per mile as well as the fixed operating cost per mile

variable operating cost per mile is $0.06

fixed cost operating cost=fixed costs/total miles driven=($3,350+$1,700+$900+$450)/16000=$6400 /16000=$0.40

average cost per mile=$0.06+$0.40=$0.46

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Answer:Hello i’m figuring this question out for you

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3 years ago

Question 3: Cost terminology in manufacturing firms a) Direct materials include all materials and components only raw materials

zaharov [31]

Answer:

1. a. Only major materials and components.

Only the major materials and components are include as direct materials because these are the materials that directly needed for production.

b. Only hourly production workers (aka assembly workers).

The direct labor has to be those people who are directly involved in production which in this case is the assembly workers. Managers and Supervisors are not integral so are not direct labor.

c. Both big items that cannot be traced (e.g., factory rent) and small items that are not worth tracing (e.g., glue, grease).

All other items involved in production should be included as manufacturing overheads including big items and small items that cannot be traced.

Rent for the factory building ⇒ Manufacturing Overhead (OH).

Cost of engines used in production ⇒ Direct materials (DM).

Depreciation on production equipment ⇒ Manufacturing Overhead (OH).

Cost of lubricant used in production. ⇒ Manufacturing Overhead (OH).

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2 years ago

An employer has 2500 employees. They may want to consider self-insurance for their health benefits plans and workers compensatio

Mariana [72]

An employer has 2500 employees. They may want to consider self-insurance for their health benefits plans and workers' compensation plans because the employers can use duplication of exposure units in the insurance plans

<h3>What is Self-Insurance?</h3>

This refers to the type of insurance for oneself or one's interests by maintaining a fund to cover possible losses rather than by purchasing an insurance policy.

Hence, we can see that An employer has 2500 employees. They may want to consider self-insurance for their health benefits plans and workers' compensation plans because the employers can use duplication of exposure units in the insurance plans

Read more about self-insurance here:

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1 year ago

In a simple economy in which prices are constant and with no income taxes or imports, the marginal propensity to consume is 0.8.

lutik1710 [3]

Answer: Increase by $250

Explanation: As per the general rule of economics when there is an increase in income, that increase will eventually lead to increase in expenditure.

As, there is an increase in investment in the given case so it will result in increase in income for the economy.

We can compute it as :-

$change\:in\:income=\frac{change\:in\:investment}{1-MPC}$

$change\:in\:income=\frac{\$50}{1-0.8}$

= $250

Therefore, the expenditure would increase by $250

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3 years ago

Which of the following is not true of generally accepted accounting principles?

andrey2020 [161]

Answer:

(A) GAAP does not have substantial authoritative support.

Explanation:

Choices B to C are true about GAAP.

Now, Choice A is not true since GAAP also includes detailed procedures and practices that provide a standard and not only broad guidelines of general application and this will imply that GAAP has a substantial authoritative support.

Also it is called "Generally Accepted Accounting Principles" for this reason.

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3 years ago