Increase real GDP and the price level.
Answer:
<em>a. equipment.
</em>
<em>c. cash.
</em>
<em>d. land.
</em>
<em>e. inventory.</em>
Explanation:
Tangible resources are <em>physical objects and assets that are noticeable and have physical characteristics. It is quick to liquidate these products and have a fixed price.</em>
These are critical when it comes to accounting because these help a company realize that when placed on balance sheets or financial statements it's financial position.
at an interest rate of 5%, the present value of the contract would be $953.14
Proration occurs because it is impossible to accurately estimate the future overhead costs and production activity; it is either the overhead is over applied or under applied. The variance will have to be adjusted for at the end of the financial year.
Answer and Explanation:
The computation is shown below;
a) The In-house purchasing cost last year is
= Fixed costs + Variable costs
=$85,000 + Total number of purchase orders × cost per order
= $85,000 + 1400 × 15
= $106,000
b)
The outsourcing cost is
Outsourcing cost = Fixed costs +Variable costs
= $100,000 + Total number of purchase orders × cost per order
= $100,000 + 1400 × 5
= $107,000
c) Total number of purchase orders = 1600
In-house purchasing cost = 85,000 + 1600 × $15 = $109000
Outsourcing cost = $100,000 + 1600 × $5 = $108000
Yes, David should outsource as the outsourcing cost is less than the in-house purchasing cost.
