Explanation:
The retained earnings are calculated by adding net income to (or subtracting net losses from) the previous term's retained earnings and then subtracting any net dividend(s) paid to the shareholders. The figure is calculated at the end of each accounting period (quarterly/annually.)
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Answer:
The correct answer is a. Developing a strategic vision, setting objectives, and crafting a strategy
.
Explanation:
Management has the responsibility of charting the strategic course, establishing a series of objectives that allow it to choose a strategy that allows achieving everything planned. Likewise, the board of directors is responsible for defining and executing such strategies.
The management process has the following stages:
1. Define strategic vision.
2. Set Goals.
3. Develop the strategy.
4. Apply and implement the strategy.
5. Evaluate performance and implement controls.
Answer:
Financial disadvantage of 138,600
Explanation:
![\left[\begin{array}{cccc}&produce&buy&Differential\\$Purchase&&-447,000&-447,000\\$Avoidable\: Cost&-283,400&0&283,400\\$Unavoidable\: Cost&-114,400&-114,400&0\\$Total Cost&-397,800&-561,400&-163,600\\$additional segment&0&25,000&25,000\\$Net Effect&-397,800&-536,400&-138,600\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%26produce%26buy%26Differential%5C%5C%24Purchase%26%26-447%2C000%26-447%2C000%5C%5C%24Avoidable%5C%3A%20Cost%26-283%2C400%260%26283%2C400%5C%5C%24Unavoidable%5C%3A%20Cost%26-114%2C400%26-114%2C400%260%5C%5C%24Total%20Cost%26-397%2C800%26-561%2C400%26-163%2C600%5C%5C%24additional%20segment%260%2625%2C000%2625%2C000%5C%5C%24Net%20%20Effect%26-397%2C800%26-536%2C400%26-138%2C600%5C%5C%5Cend%7Barray%7D%5Cright%5D)
The allocate cost and teh depreciation cost will be unavoidable, so should be considered as a cost for the purchase option
Also the inocme from teh additional segment is only considered for the purchase option
<u>The avoidable cost will be:</u>
Direct Materials
Direct Labors
Variable overhead
Supervisor
Thse cost are zero in the purchase escenario