Answer:
Sunk cost. The individual is still considering sunk cost in making future decisions
Explanation:
Sunk cost is cost that has already been incurred and cannot be recovered. It should not be considered in making future decisions.
In this question, the money paid for the meal is the sunk cost and it shouldn't be considered in making the decision of whether to continue the meal or not to.
I hope my answer helps you
Answer:
Cost Containment
Explanation:
The reason is that the cost is the main factor when the the market players have equivalent capabilities and the firm then tries to manage the overall cost of the organization so that it can offer the product at the discount to the competitor's product. This lower cost gives the competitors advantage which the company utilizes in their best interest.
Answer:
what managers think costs should be
Explanation:
Standard cost systems are based on what managers think costs should be as opposed to actually using the prices based on what they should be. The managers accomplish these prices by estimating the costs that will be incurred by the business during the production process and then creating the costs based on their estimations.
Answer:
$10,464.41
Explanation:
in order to answer this question we can use the external financing needs formula, except that we will have EFn = 0, and look for Δ Sales
EFN = (A/S) x (Δ Sales) - (L/S) x (Δ Sales) - (PM x FS x (1-d))
- EFN = $0
- A= assets = $155,000
- S = current sales = $66,000
- Δ = ???
- L = current liabilities = $0
- PM = profit margin = $30,300 / $66,000 = 0.4591
- FS = current sales + Δ Sales = $66,000 + Δ Sales
- 1 - d = 1 - dividend payout ratio = 1 - 0.3 = 0.7
0 = 2.3485Δ - 0 - (0.4591 x FS x 0.7)
0 = 2.3485Δ - (0.3214 x FS)
0 = 2.3485Δ - [0.3214 x ($66,000 + Δ)]
0 = 2.3485Δ - $21,212.40 + 0.3214Δ
$21,212.40 = 2.0271Δ
Δ = $21,212.40 / 2.0271 = $10,464.41
If no new equity is raised, sales can increase by $10,464.41. Total forecasted sales = $76,464.41
