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2 years ago

Consider a bakery in your community. Ingredients such as sugar and butter would be examples of _____ costs.

Business

1 answer:

scoray [572]2 years ago

5 0

Ingredients such as sugar and butter would be examples of variable costs.

Fixed costs are cost that remain constant no matter the amount of output. Fixed costs examples are rent, loan, salaries.

Variable costs are cost which change with a change in output as the business provides more services. Variable cost examples are cost of raw materials, commissions and so on.

Find out more at: brainly.com/question/14083670

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A seasonal index for a monthly series is about to be calculated on the basis of three years' accumulation of data. The three pr

Vika [28.1K]

Answer:

A. 0.684

Explanation:

A seasonal index refers to an index that is used to compare the value for a particular period with the average value of all periods.

The purpose of using a seasonal index is to show the relationship between the two values, and the degree to which the two values are different.

The seasonal index can be calculated as the latest value for a period divided by the average of all periods. Therefore, we have:

Seasonal index for July = Latest value for July / Average demand over all months = 130 / 190 = 0.684.

Therefore, he approximate seasonal index for July is 0.684.

5 0

3 years ago

During periods of decreasing costs, the use of the LIFO method of costing inventory will result in a lower amount of net income

gladu [14]

Answer:

b. False

Explanation:

LIFO stand for Last in First Out. This means LIFO inventory valuation is based on earlier goods purchased.

So, when costs are decreasing, they are affecting latter prices and this usually affect FIFO (First in First Out) not LIFO.

7 0

3 years ago

Patterson Co. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV?

diamong [38]

Answer:

NPV= $60.52

Explanation:

Giving the following information:

Robbins Inc. is considering a project that has the following cash flow: −$950 $500 $400 $300

Cost of capital= 10.00%

To calculate the net present value we need to use the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

Cf= cash flow

For example= Year 3: 300/1.10^3= 225.39

NPV= $60.52

8 0

3 years ago

Which of the following statements is CORRECT? a. The present value of a 3-year, $150 annuity due will exceed the present value o

lorasvet [3.4K]

Answer:

Statement a. is correct.

Explanation:

The effective annual rate is always higher than the nominal interest rate, as the formula is clear for any number of periods, for any interest rate:

Effective Annual Rate of return = $(1 + \frac{i}{n})^n - 1$

Further if we calculate the present value of annuity due and ordinary annuity assuming 6 % interest rate, then:

Present value of annuity due =

$(1 + 0.06) \times 150 \times (\frac{1 - \frac{1}{(1 + 0.06)^3} }{0.06} )$

= 1.06 $\times$ $400.95

= $425.0089

Present value of ordinary annuity = $150 \times (\frac{1 - \frac{1}{(1 + 0.06)^3} }{0.06} )$

= $150 $\times$ 2.6730

= $400.95

Therefore, value of annuity due is more than value of ordinary annuity.

Statement a. is correct.

5 0

3 years ago

2. Lori is a company that produces 1000 boxes per day recruiting 5 staff with overhead cost of 200 USD . Each worker’s shift is

s2008m [1.1K]

JIT strategy stands for Just-in-time. The JIT strategy is used to increase efficiency and decrease waste by reducing inventory costs. 
The labor productivity before the JIT strategy was
= output / labor hours = 1000/(5*10) = 20 boxes per labor hour .
The labor productivity after JIT strategy was applied is:
= output / labor hours = 1200/(5*10) = 24 boxes per labor hour .

4 0

3 years ago