Answer:
If the firm is going to need less than 50,000 motors, they should purchase them from the outside vendor.
If the firm is going to use between 50,000 to 59,999 motors, it should use process A.
If the firm expects to use 60,000 or more motors per year, it should use process B.
Explanation:
Process A:
contribution margin per unit = $11 - $7 = $4
break even number of units = $200,000 / $4 = 50,000 units
Process B:
contribution margin per unit = $11 - $8 = $3
break even number of units = $180,000 / $3 = 60,000 units
This type of sampling method is called cluster sampling. With cluster sampling, the researcher divides the population into distinct group so called clusters. Then, a simple random sample of clusters is particular from the population. The researcher conducts his investigation on data from the sampled clusters. Paralleled to simple random sampling and stratified sampling, cluster sampling has advantages and disadvantages. For example, given equal sample sizes, cluster sampling usually makes available less precision than either simple random sampling or stratified sampling. On the other hand, if travel costs between clusters are high, cluster sampling may be further cost-effective than the other methods.
Answer:
The correct answer is (C)
Explanation:
Free cash flow is calculated by subtracting operating cash flow from the expenditures. Free cash flow statement also known as FCF statement is generally the amount of cash left after paying all the expenditures. As it is the leftover amount it is not reported on the cash flow statement. This free cash flow amount is used to analyse how much a company can distribute among the stakeholders.
Answer and Explanation:
B. reduces the number of available job opportunities
Answer:
The correct answer is letter "D": does not require estimates of bad debt losses.
Explanation:
There are mainly two approaches while recognizing bad debts (unpaid debts): <em>the allowance method </em>and <em>the direct write-off method</em>. Using the allowance method the unpaid account receivable goes through a series of stages until it is recognized as a bad debt. There are no set criteria to do so. When the firm eventually recognizes and calculates the amount of a bad expense, it is recorded in an allowance account. The negative balance diminishes the company's revenue.
The direct write-off method does not generate any allowance account. The account receivable is simply written-off after the company determines the debt as uncollectible. Thus, there is no need to estimate bad debt losses using this approach.
