Answer:
The correct answer is the definition of fixed and variable costs.
Explanation:
The cost of production of a company can be subdivided into the following elements: rents, wages and wages, depreciation of capital goods (machinery and equipment, etc.), the cost of raw materials, interest on operating capital , insurance, contributions and other miscellaneous expenses. Different types of costs can be grouped into two categories: fixed costs and variable costs.
Fixed costs
The fixed costs are those that the company necessarily has to incur when starting its operations. They are defined as costs because in the short and intermediate term they remain constant at different levels of production. As an example of these fixed costs, executive salaries, rents, interest, insurance premiums, depreciation of machinery and equipment and property taxes are identified.
Variable costs
Variable costs are those that vary with the volume of production. The total variable cost moves in the same direction of the production level. The cost of raw material and the cost of labor are the most important elements of variable cost.
The decision to increase the level of production means the use of more raw material and more workers, so the total variable cost tends to increase production. The variable costs are, then, those that vary as production varies.
For a manufacturing process to be smart instituting employee surveillance and monitoring is very important.
<h3>What is Smart Manufacturing?</h3>
Smart Manufacturing also called CAD/CAM, computer aided design and computer aided manufacturing involves the integration of computer in the production of goods and services.
In recent times the concept of internet of things is being added to smart manufacturing for data collection
Learn more about Smart Manufacturing here:
brainly.com/question/16401309
#SPJ1
The answer: an agency relationship
Answer:
Required rate of return = 12.2%
Explanation:
According to the dividend growth model the price of a stock is
D*(1+G)/R-G
D= dividend
G=growth
R= Required rate of return
In order to find the required rate of return we will put the values given to us in the question into the formula.
D=5
G=2%
Price = $50
50=5*(1+0.02)/R-0.02
50R-1=5.1
50R=5.1+1
50R=6.1
R=6.1/50
R=0.122=12.2%
Answer:
The computations are shown below:
Explanation:
a. Goods available for sale is
= beginning inventory + net purchase
= $11,000 + $13,500
= $24,500
The cost of goods sold is
= Goods available for sale - ending inventory
= $24,500 - $6,600
= $17,900
The gross profit is
= Net sales - cost of goods sold
= $21,500 - $17,900
= $3,600
b. For Krug service company, the net income is
= revenue - expenses
= $26,000 - $9,700
= $16,300
For Kleiner Merchandising Company, it is
= Gross profit - expenses
= $3,600 - $2,050
= $1,550
