Answer:
Insurance cost
Explanation:
There are various costs that incur in projecting operating expenses. Insurance cost is usually paid at the start of the project normally in the first year. Insurance cost is not likely to incur in the second and third year if the situation of assess such as equipment remains the same. If the new equipment is purchases by the company in the second or third year only then insurance cost will incur.
<span>As part of its risk taking function, an intermediary such as a wholesaler performs the function of sharing risk with the producer when it stocks merchandise in anticipation of sales. Risk taking involves determining what you are willing to risk to possibly do something else. In this case, a wholesaler and a producer will share the risk of the item selling when they stock shelves prior to seeing if it's what the consumer wants. </span>
Answer:
transfer cost $25
Explanation:
The minimum transfer price is equal to the marginal price.
The marginal price, in this case, will be the variable cost, because there is no additional fixed cost related to the transfer:
This should be analyzed like a special order request, only the variable cos matter unless we incur in additional fixed cost.
Marginal Cost = Variable cost: 25