Ask question

Ask question

All categories

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.

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.

You might be interested in

The focus groupis meeting on Tuesday.The policy is too old; itneeds to be revised.The management teamwants to hire new warehouse

erastovalidia [21]

Answer:

The verbs in these sentences are:

1. is

2. needs

3. wants

4. buys

5. feel

6. recommend

7. has

8. makes

9. uses

10. shows

Explanation:

Verb is a word in a sentence which describes an action of a person. It is the word which gives understanding about the task performance in a sentence. The verb can be single or multiple in a single sentence. The choice of verb is dependent on the noun. There are 4 forms of verb which are used in a sentence.

4 0

3 years ago

XYZ pays for 40% of its raw materials purchases in the month of purchase and 60% in the following month. Budgeted cost of materi

kirza4 [7]

Answer:

$265,150

Explanation:

Cost of material purchases in July

= 256,550 × 60/100

= 256,550×0.6

= 153,930

Cost of purchases in August

= 278,050×40/100

= 278,050×0.4

= 111,220

Total cash disbursement

= 111,220+153,930

= $265,150

4 0

3 years ago

In introducing the opportunity cost of time into the theory of consumer behavior, we find that, all else equal:______.

olchik [2.2K]

In introducing the opportunity cost of time into the theory of consumer behavior, we find that, all else equal one should consume less of time-intensive goods.

Opportunity cost of time is actual cost of the time lost in performing one activity instead of another. In other words it is the loss of the time done in choosing an opportunity between the two.

One should consume less time intensive goods because it will save more time.

Theory of consumer behavior is the study of how the people decide to spend their money in the given choices to them according to the budget constraints and individual preferences.

To know more about Opportunity cost here

brainly.com/question/27254301

#SPJ4

5 0

1 year ago

U.S. companies moving into the international market need to be sensitive to the need for local country or regional responsivenes

Nimfa-mama [501]

Answer: consumer needs, political and legal structures, and social norms vary by country.

Explanation:

It should be noted that different countries have different customer needs, values and social norms with regards to how business is done.

Therefore, it's vital for any company that's moving into the international market to always have this in mind and therefore should be sensitive to these needs in order to achieve its goals.

7 0

3 years ago

The Magnetron Company manufactures and markets microwave ovens. Currently, the company produces two models: full-size and compac

SVEN [57.7K]

Answer:

Max: $Z = 120x + 130y$

Subject to:

$2x + y \le 500$

$2x + 3y \le 800$

$x \le 220$

$y \le 180$

$x,y \ge 0$

Explanation:

Given

Let:

$x \to Units\ of\ full\ size$

$y \to Units\ of\ compact\ size$

Required

Formulate a linear optimization model

<u>Constraints for time:</u>

For the general assembly (hours), we have the following parameters:

$x \to 2$

$y \to 1$

So, the expression is:

$2x + y$ --- (1)

For the electronic assembly (hours), we have the following parameters:

$x\to 2$

$y \to 3$

So, the expression is:

$2x + 3y$ --- (2)

Solving further [Time available]:

$General\ Assembly \to 500$

$Electronic\ Assembly \to 800$

So, (1) and (2) becomes:

$2x + y \le 500$

$2x + 3y \le 800$

<u>Constraints for selling:</u>

$Full\ Size \to 220$ --- at most

$Compact \to 180$ -- at most

The above can be represented as:

$x \le 220$

$y \le 180$

<u>Earnings contribution:</u>

$Total\ Full\ Size \to 120$

$Total\ Compact \to 130$

The objective function to be maximized can then be modelled as:

$Z = 120x + 130y$

4 0

3 years ago