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vodomira [7]
3 years ago
6

When making business changes in the short run, management sometimes gets locked in to certain costs arising from previous decisi

ons. This is type of cost is best known as:_______.
a. controllable.
b. differential.
c. uncontrollable.
d. sunk.
Business
1 answer:
Jlenok [28]3 years ago
3 0

Answer: This is the type of cost known as Sunk.

  • sunk cost is a cost that has already been incurred and cannot be recovered. Sunk costs are contrasted with prospective costs, which are future costs that may be avoided if action is taken.

  • A sunk cost refers to money that has already been spent and which cannot be recovered. ... Sunk costs are excluded from future business decisions because the cost will remain the same regardless of the outcome of a decision.

  • The sunk cost effect is manifested in a greater tendency to continue an endeavor once an investment in money, effort, or time has been made. Evidence that the psychological justification for this behavior is predicated on the desire not to appear wasteful is presented.

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Suppose that a pharmaceutical company wants to grow in size but is constrained in the short run by its production capacity. What
Natasha_Volkova [10]

Answer:

Build more factories, Expand the size of current factories, Use cheaper materials

Explanation:

Long run is not a precise period of time thereby meaning it could span from a year to eternity, which is adequate time to plan and grow. Building more factories will increase the growth in size for the capacity for  more production as well as expanding the size of the current factories. Due to the fact that there is a constraint of production capacity the company should look for alternatives in production technology in the long run so as to reduce cost of materials  but with the same production quality.

6 0
3 years ago
Read 2 more answers
When setting up an ecommerce shop, which stage of the searcher’s intent should youfocus?
Step2247 [10]

Answer:

Research

Explanation:

An e-commerce shop is an online based store where the seller lists items for sale and customers search and select and order the ones they would like to purchase. The stage of the searcher's intent an e-commerce owner would focus on is the <em>research stage. </em>Their website should always be at the top of the potential customers' search engines. This would increase the likelihood of them committing and making a purchase.

7 0
3 years ago
s has decided that he wants to build enough retirement wealth that, if invested at 7 percent per year, will provide him with $3,
Crank

Answer:

Annual deposit= $26,344.36

Explanation:

Giving the following information:

The interest rate is 7 percent per year.

He wants to have enough money to provide him with $3,000 of monthly income for 30 years. To date, he has saved nothing, but he still has 20 years until he retires.

First, we need to calculate the total amount of money required:

Final value= 3,000* (30*12)= $1,080,000

Now, we can calculate the annual deposit:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

FV= 1,080,000

i= 0.07

n= 20

A= (1,080,000*0.07) / [(1.07^20) - 1]= $26,344.36

7 0
3 years ago
Burns Industries currently manufactures and sells 23,000 power saws per month, although it has the capacity to produce 38,000 un
Rudik [331]

Answer:

Increase by $37,100.

It will accept any time the price is above $43 with the condition it will not incur in additional fixed cost.

$63. is the sales price that generates 106,000 dollar of operating income

Explanation:

As the units will not inccur in any additional fixed cost we should check for the contribution margin this units will provide:

50 dollars - 43 dollar of variable cost = 7 dollars

5,300 saws x $7 = 37,100

The sales reveues will increase by that amount.

(5,300 x $43 dollars each in cost + 106,000 contribution )/5,300 = sales price

sales price = 63

3 0
2 years ago
Voiles Company reissued 200 shares of its treasury stock. The treasury stock originally cost $25 per share and was reissued for
Naddika [18.5K]

Answer:

The correct option is A,A. 7,000 = NA + 2,000 - (5,000) NA - NA = NA 7.000 FA

Explanation:

By issuing the treasury stock ,asset,cash to be precise increases by $7000($35*200) which implies a debit to the asset ,hence the $7000 seen on the left hand-side of the equation.

This transaction has no liability impact,as a result liabilities is denoted NA,not applicable.

The par value of the treasury is to be credited to treasury stock with $5,000($25*200).

Lastly the difference between the par value and the issue is credited to paid-in capital from treasury stock i.e($35-$25)*200))=$2000,this is depicted by $2000 in the equation

5 0
3 years ago
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