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3 years ago

When performing capital budgeting, __________ incurred by a project are irrelevant to future investment decisions.

Business

1 answer:

m_a_m_a [10]3 years ago

6 0

Question:

When performing capital budgeting, __________ incurred by a project are irrelevant to future investment decisions.

A) Opportunity costs

B) Depreciation

C) Sunk costs

D) Taxes

Answer:

The correct answer is C) Sunk Costs

Explanation:

Capital Budgeting is the art (most applicable to corporate persons) of planning expenditure that will be incurred in the future, especially on long term assets.

The reason you cannot factor Sunk Cost into a Capital Budget is because of its very nature.

Sunk Costs refer to monies for items that have already been expended and can never be recovered. If it can never be recovered and has already been incurred, it has no role to play in future considerations especially when the purpose of Capital Budgetting is considered.

The primary purpose of a Capital Budget is that it helps to further evaluate the inflow against the outflow of an investment to check whether or not the return is acceptable.

Every other option given in the question above are items that have futuristic qualities.

Cheers

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The ledger of Marigold Corp. on July 31, 2017, includes the selected accounts below before adjusting entries have been prepared.

k0ka [10]

Answer:

1. July 31

Dr Supplies expense $9,120

Cr Supplies $9,120

2. July 31

Dr Rent expense $900

Cr Prepaid rent $900

3. July 31

Dr Salaries and wages expense $2480

Cr Salaries and wages payable $2480

4. July 31

Dr Depreciation expense $400

Cr Accumulated depreciation - Building $400

5. July 31

Dr Unearned service revenue $3,760

Cr Service revenue $3,760

6. July 31

Dr Miscellaneous expense $1,840

Cr Miscellaneous expense payable $1,840

Explanation:

Preparation of the adjusting entries at July 31 assuming that adjusting entries are made monthly.

1. July 31

Dr Supplies expense $9,120

Cr Supplies $9,120

($24,000-$14,880)

(Being To record supplies expense)

2. July 31

Dr Rent expense $900

Cr Prepaid rent $900

(3,600*1/4)

(Being To record rent expense)

3. July 31

Dr Salaries and wages expense $2480

Cr Salaries and wages payable $2480

(Being To record salaries and wages expense)

4. July 31

Dr Depreciation expense $400

Cr Accumulated depreciation - Building $400

($4,800*1/12)

(BeingTo record depreciation expense)

5. July 31

Dr Unearned service revenue $3,760

Cr Service revenue $3,760

(Being To record unearned service revenue)

6. July 31

Dr Miscellaneous expense $1,840

Cr Miscellaneous expense payable $1,840

(Being To record maintenance and repairs expense)

7 0

3 years ago

Natal Technologies is developing a superior ultrasound machine for which it is required to invest $800,000. Based on the company

zaharov [31]

Answer:

d. 4 years.

Explanation:

The payback period is the length of time that it takes for the future cash flows to equal the amount invested in a project. It takes 4 years to get $800,000 for Natal Technologies product.

5 0

3 years ago

Logistics Solutions provides order fulfillment services for dot merchants. The company maintains warehouses that stock items car

denis23 [38]

Answer:

1. 4,200

2. $12,810

3. -$3,090 Unfavorable

4. a. $265 Favorable

b. -$3,355 Unfavorable

Explanation:

The computation of given question is shown below:-

1. Standard labor-hours

Standard labor-hours = Shipped items × Direct labor-hours

= 140,000 × 0.03

= 4,200

2. Standard variable overhead cost allowed

Standard variable overhead cost allowed = Standard variable Overhead rate per hour × Standard labor-hours

= $3.05 × 4,200

= $12,810

3. Variable overhead spending variance

Variable overhead spending variance = Standard variable overhead for actual output - Actual variable Overhead

= $12,810 - $15,900

= -$3,090 Unfavorable

4. a. Variable overhead rate variance

Variable overhead rate variance = (Actual hours × Standard rate per hour) - Actual variable Overhead

= (5,300 × $3.05) - $15,900

= $16,165 - $15,900

= $265 Favorable

b. Variable overhead efficiency variance

Variable overhead efficiency variance = Standard rate per hour × (Standard hours - Actual hours)

= $3.05 × ( 4,200 - 5,300)

= $3.05 × -$1,100

= -$3,355 Unfavorable

4 0

3 years ago

Please help! The marginal revenue product of the second worker is

Setler [38]

Answer:

The marginal revenue product of the second worker is $150.

Explanation:

This is because when we change from 1 worker to 2 workers, the total product increases by 30 (from 20 when there were 1 worker to 50 when there wew 2 workers).
The value of this extra product, considering that the price of every T-shirt is $5 (marginal revenue of this product) equals $30\times\$5=\$150$ .
This is additional value in dollars that the company has because incuding an extra employee when it changes from oneto two employees.

8 0

4 years ago

What is the minimum wage per hour in South Africa at 2021?

DedPeter [7]

Answer:

R21,69

Explanation:

Minimum wage is least amount a worker can earn in a particular country according to the legislation of that country.

According to the Employment and Labour minister TW Nxesi, he announced that the National Minimum Wage (NMW) for each ordinary hour worked has increased from R 20,76 to R 21,69 for the year 2021 effective from 01 March 2021.

The NMW legislation came into effect in South Africa on 01 January 2019 at a level of R 20 per hour. In terms of NMW act of 2018, the policy framework is a floor level below which no employee should be paid.

So, the minimum wage in South Africa as at 2021 is R 21,69

6 0

3 years ago