Answer:
The company should make the components because incremental costs are $2 less than the purchase price
Explanation:
The cost of making each unit of component = Direct Labour + Direct Material + Variable Overhead*
*The overhead cost of $4 contains both a fixed and variable element. It has been mentioned that 25% of overhead cost is incremental i.e. it increases with each additional unit produced (marginal cost). The incremental cost is the variable element.
Variable element = $4 x 25% = $1
Fixed element = $4 x 75% = $3
Thus, the cost of making each unit of component = $5 + $2 + $1 = $8,
whereas the cost of purchasing each unit of complement is $10. Hence, the company should produce the component as it is less by $2 ($10 - $8) to produce than it is to purchase.
Answer:
The correct answer to the following question will be Option A.
Explanation:
- Net investment or expenditure seems to be the total money that a business invests on financial assets, less the deferred revenue of those resources. This statistic gives people a sense of real spending on capital products such as plants, machinery, including technology used throughout the activities of the business.
- The effective improvement including its program's net income, after-tax recovery value of the properties to have been substituted by the task.
So that the above option A is not related to the given scenario.
Answer:
D
. Empowerment
Explanation:
Empowerment refers to an authority or a power that is to be provided to someone in order to do something.
Here in a given case, it is represent that Lamar who is a sales person and he appreciated for the authority he have with respect to meet out the customer needs
so here this situation refers to the empowerment as he is fully utilizing his power to accomplish the company objective
Answer:
One of the biggest limitations of accounting is that it cannot measure things/events that do not have a monetary value. If a certain factor, no matter how important, cannot be expressed in money it finds no place in accounting.
