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dusya [7]
3 years ago
6

Jarett Motors is trying to decide whether it should keep its existing car washing machine or purchase a new one that has technol

ogical advantages (which translate into cost savings) over the existing machine. Information on each machine follows: Old machine New machine Original cost $9,000 $20,000 Accumulated depreciation 5,000 0 Annual cash operating costs 9,000 4,000 Current salvage value of old machine 2,000 Salvage value in 10 years 500 1,000 Remaining life 10 yrs 10 yrs Refer to Jarett Motors. The $4,000 of annual operating costs that are common to both the old and the new machine are an example of a(n):________ a. opportunity cost b. irrelevant cost c. future avoidable cost d. sunk cost
Business
1 answer:
raketka [301]3 years ago
5 0

Answer:

The correct option is <u>b. irrelevant cost</u>.

Explanation:

An irrelevant cost can be described as an expense that will not be affected by the decisions of thee management. Therefore, irrelevant costs are those that will not change if you choose one option over another in the future.

Therefore, the $4,000 of annual operating costs that are common to both the old and the new machine are an example of irrelevant cost. This is because the 4,000 of annual operating costs will not be affected or will still be incurred whether Jarett Motors managment decide to keep its existing car washing machine or purchase a new one.

Therefore, the correct option is <u>b. irrelevant cost</u>.

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Answer:

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Explanation:

8 0
2 years ago
Durango, Inc. purchased a parcel of land for $450,000. It paid attorney fees of $3,000 to verify title to the land. In addition,
Crank

Answer:

D. $460,500

Explanation:

Given that

Cost of parcel of land = 450000

Legal fees = 3000

Broker's fees = 7500

Therefore,

Amount recorded as cost of parcel of land is

Cost of parcel of land + legal fees + brokers fee

= 450000 + 3000 + 7500

= $460,500

When purchasing land, fees like commissions, legal fees, bank fees, title fees and other expenses added before the land can be used are considered as part of the land's cost. Hence the answer.

8 0
3 years ago
Read 2 more answers
FILL IN THE BLANK. the___process originates in the sales department and ends in the accounting department.
k0ka [10]

The fulfillment process originates in the sales department and ends in the accounting department.

<h3>What conditions must a sales department meet?</h3>

To link a product or service with potential customers or clients, a sales department must create and implement a protocol that is appropriate to the nature of the product or service. For instance, some goods or services necessitate direct communication between a salesperson and a customer in order to close a deal.

<h3>What function does the department of accounting and finance serve?</h3>

The core of any corporation is its accounting and finance division, which is in charge of maintaining the effective financial management and financial controls required to support all corporate operations.

To learn more about Fulfillment Process here:

brainly.com/question/11157883

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5 0
1 year ago
In product modification, three conditions must be met to improve a firm's product mix: the product must be modifiable, customers
sesenic [268]

Option A, The modification would make products more consistent with the expectations of the consumer.

<u>Explanation: </u>

The process to change the current products according to customer requirements is product modification.

Each material has external characteristics such as volume, form, texture, color, etc. and internal effects such as strength, toughness and other characteristics.

The transition in the existing product is referred to as product modification as per customer requirements. It may change the interior or external appearance of the property.

For Example, Mobile is a perfect example of recognizing product changes. Compare the app which started a year ago with the new mobile devices.

6 0
3 years ago
Anna has just opened her landscaping business in a new office/industrial park located within the city of Ashdown, Arkansas. Upon
tino4ka555 [31]

Answer:

The correct answer is c. enforceable as a private law.

Explanation:

Within a lease agreement, obligations are generated for both contractors. The owner of the property gives the right to enjoy it and this gives rise to a series of indispensable obligations for the preservation of the interests of the owner.

One of the obligations of the lessor is to keep the leased thing in good condition, to fulfill this obligation it is up to him to make the necessary repairs, because the tenants generally correspond to the lessee. But, the landlord has restrictions when performing such repairs.

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3 years ago
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