It is a Capital Budget, because major investment usually involve some form of capital, such as money or property. i hope this helps.
Forward buying.
Forward buying is where a customer will be incentivized to purchase more than they need or intended because of certain marketing or pricing initiatives, such as product promotions and quantity discounts (like bulk sales). This option allows the seller to front-load revenue earlier than usual, despite offering the products at a reduced cost through such initiatives and price fluctuations.
Answer:
B) less than $24,000.
Explanation:
Given:
Revenue: $80,000
- Renting fee: $36,000
- Operating costs: $20,000
So earning before tax is:
Revenue - Renting fee - Operating cost
= $80,000 - $36,000 - $20,000
= $24,000
In this case, they want to know the economic profits from the donut shop, which means that it will be less than $24,000 because they did not count the wage of the husband and wife.
Answer:
(a) Total manufacturing costs = $685,000
(b) Total cost of work in process = $721,000
Explanation:
(a) Compute total manufacturing costs.
Total manufacturing cost can be described as the total cost that a manufacturing company incurred within a reporting period to produce goods. This can be computed using the information provided in the question as follows:
Total manufacturing cost = Direct materials used + Direct Labor + Total manufacturing overhead = $199,000 + $238,000 + $248,000 = $685,000
(b) Compute total cost of work in process.
Total cost of work in process refers to the aggregate cost of partially completed goods. This can be computed using the information provided in the question as follows:
Total cost of work in process = Beginning work in process + Total manufacturing costs = $36,000 + $685,000 = $721,000
