Answer:
Sustainability refers to activities that can continue without depleting nonrenewable resources. By locally producing food, shipping costs are reduced. Shipping costs involve the use of fuel (gasoline and diesel), materials (boxes and plastic bags), equipment (machinery and trucks), etc. Many of these costs require the use of nonrenewable resources, e.g. oil by-products and metals, so reducing their use helps the environment.
Economically speaking, local food production helps to lower food costs, local farmers are benefited and more money stays in the local economy. Globalization shrunk the world, so producing food locally may apply to a region surrounding a city or a whole country, and the large the net exports (exports - imports) of a region or country, the better.
Answer: It can lead to dysfunctional decision making.
Explanation:
It may lead to a dysfunctional decision making. For example, a division with a current ROI of 30% will not wish to accept a project that offers a ROI of 25%, because it would dilute the current figure it has. However, the 25% ROI may be able to meet or exceed the company’s target.
Return on investment (ROI) increases with the asset age if the net book value (NBV) is used, thereby giving managers incentive to hang on to possibly obsolescent and inefficient machines. It may also encourage the manipulation of the profit and the capital employed figures to improve results, e.g to obtain a bonus payment. The use of different accounting policies can lead to confusion in comparisons e.g. depreciation policy.
In order for a shortage to be eliminated, the price must rise.
Answer:
B
Explanation:
Year end - December 31,2018 (first account year)
Pretax Income - $640,000
Interest expenses ( $20,000)
Excess warranty expense add back $45,000
Excess depreciation deducted ($120,000)
Taxable income = $545,000
Tax rate = 40%
Income tax expense for 2018 = $545,000 * 40%
=$218,000