Answer:
Sunk cost
Explanation:
-Incremental cost is the total cost of producing an additional unit.
-Sunk cost is a cost that has already been paid and that it is not possible to get it back.
-Out-of-pocket cost is a cost that requires a direct payment in the actual period.
-Opportunity cost is the cost of not receiving a benefit when you choose an alernative over another one.
-Period cost is a cost that is not associated with the production of goods.
According to this, the answer is that the $14 per unit is a sunk cost because the company has already spent that manufacturing the products and it is not able to recover that money.
Answer:
Debit income summary $30,00
Explanation:
Closing entries are used to move balances from temporary accounts to permanent baccounts so that a business can recognise income or loss made during an accounting period.
2/3 profit and loss is for Dana, that is (2/3)* 30,000= $20,000
1/3 of profit is assigned to Emile that is (1/3)* 30,000= $10,000
So the close out entries will be
A debit to income summary of $30,000
A credit to Dana of $20,000
A credit to Emile of $10,000
Answer:
a. $12.40
Explanation:
EBIT stands for earnings before interest and taxes; therefore, interest and taxes rates should not be considered. The EBIT is determined as the amount from sales deducted by operating costs and depreciation. The EBIT is:
The answer is alternative a. $12.40.
Two methods of capital investment analysis that incorporate the time value of money are -Net Present Value and Discounted Cash Flow
1- Net Present Value
Net Present Value reduces the expected future cash flows by a specific rate to arrive at their value in today's terms. After subtracting the initial investment cost from the present value of the expected cash flows, it can be determined whether the project is worth pursuing. If the NPV is a positive number, it means it's worth pursuing while a negative NPV means the future cash flows aren't generating enough return to be worth it and cover the initial investment.
2- Discounted Cash Flow
With DCF analysis, the discount rate is typically the rate of return that's considered risk-free and represents the alternative investment of the project. The present value is the value of the expected cash flows in today's dollars by discounting or subtracting the discount rate. If the result or present value of the cash flows is greater than the rate of return from the discount rate, the investment is worth pursuing.
To learn more about Net Present Value and Discounted Cash Flow here
brainly.com/question/23040788
#SPJ4
Answer: C. P&G faces a stiff rivalry with Hindustan Unilever in India, which is the market leader in consumer goods.
