Answer:
transaction costs is your answer
Explanation:
Answer:
Minimum selling price is $ 37
Explanation:
Computation of minimum selling price
Direct materials per unit $ 15
Direct labour per unit - existing $ 19
Additional for modification <u>$ 3</u>
Direct Labor per unit <u>$ 22</u>
Variable cost per unit $ 37
Since the Company has sufficient idle capacity to produce the additional order, no incremental fixed manufacturing capacity is considered.
The minimum selling price should be one which covers the variable costs ( modified for labor increase)
Answer:
b. The capital structure that minimizes the firm's weighted average cost of capital is also the capital structure that maximizes its earnings per share.
Explanation:
The optimal capital structure is estimated by calculating the mix of debt and equity that minimizes the weighted average cost of capital (WACC) while maximizing its market value. The lower the cost of capital, the greater the present value of the firm’s future cash flows, discounted by the WACC. Thus, the chief goal of any corporate finance department should be to find the optimal capital structure that will result in the lowest WACC and the maximum value of the company (shareholder wealth).
Answer:
The correct answer is letter "B": Activity-based costing.
Explanation:
Activity-Based Costing or ABC is a type of managerial accounting that assigns certain indirect costs to the item that generates the bulk of those costs. In the industrial sector, ABC is mainly used to help measure the true cost of output per unit. Compared to other costing methods, ABC provided more clear information because it considers information about the <em>company's activities, the quantity of those activities and their costs</em> in the production process.
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