Answer:
b. assign the highest cost of capital to Division Z because it is most likely the riskiest of the three division.
Explanation:
The Old Town Industries will assign highest cost of capital to Division Z because it is research and development side of business. The research will incur high cost to the company. Only the research cost which meets certain conditions it will be capitalized as development costs. This Division Z is riskiest and incurs a large amount of expense for planned search of new technologies.
The answer is A
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Answer:
It will be double counting
Explanation:
GDP or gross domestic product is the measure of the total value of productions in the economy per period. In calculating the GDP, economists consider only finished products produced within the borders of a country in a financial year.
Second-hand cars cannot be counted in the calculation of GDP because it will result in double counting. GDP is calculated using the income, expenditure, or production approach. The second-hand cars were accounted for when they were purchased or sold for the first time. If the production method was used, the vehicles were accounted for in the year they were manufactured.
Answer:
d. $672.41 per service call
Explanation:
The computation of the activity rate for servicing goods is shown below:
= (Total servicing good cost) ÷ (Total service calls)
= $195,000 ÷ 290
= $672.41 per service call
The total service call would be
= JIT distributors + Non-JIT distributors
= 200 + 90
= 290
All other information which is given is not relevant. Hence, ignored it
False. Gpd was not designed to assess welfare