Answer: Direct production makes it easier for comapanies to keep track of their production.
Explanation:
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The document which establishes an initial record of the receipt of an inventory is THE RECEIVING REPORT.
The receiving report is usually used by a business to record the details of the products that are received from suppliers. The record documents what is owned to supplier based on the number of goods accepted and the ones that are returned.<span />
Answer:
A firm shuts down in the long run when the price of the good it is producing falls below the minimum average total cost, because in the long run the firm wont be able to make any profit. In the short run the firm only shuts down if the the price of the good falls below the minimum average variable cost because in the short run the firm has already payed the fixed costs and these costs are sunk costs so if the price of the good is more than the variable cost then they can minimize their losses. So in this case the firm has a minimum average variable cost of $90 so the firm will shut down in the short term when the price falls below $90.
Explanation:
The process by which management evaluates long-term investment decisions involving long-term operational assets is called capital investment analysis.
Companies and governmental organisations use capital investment analysis as a budgeting technique to evaluate the prospective profitability of a long-term investment. Long-term investments, such as those in fixed assets like machinery, equipment, or real estate, are evaluated using capital investment analysis. Finding the choice that can provide the maximum return on investment is the aim of this approach. Businesses may employ a variety of approaches to conduct capital investment analysis, which entails computing the cost of financing, the risk-return of the project, and the expected value of projected future cash flows from the project.
Investments in capital are risky since they entail sizable upfront costs for assets meant to last for many years and that will take a long time to pay for themselves. A capital project must meet a number of fundamental criteria, one of which is an investment return that exceeds the hurdle rate, or needed rate of return, for the firm's shareholders.
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