Answer and Explanation:
The cost driver refers to the change in the activity units level with respect to the change in activity cost
There are various activities held and according to that the cost driver is also there so that it could be allocated
Just like
Activities Cost driver
1) Materials handling - Number of Requisitions
2) Machine setups - Number of Setups
3) Factory machine maintenance - Machine Hours Used
4) Factory supervision - Number of Employees
5) Quality control - Number of Inspections
Material handling should be based on allocating in the number of requisitions
And the same is applied for other activities
Answer:
$38.40
Explanation:
Target Cost = Selling Price per Unit - Profit Margin per Unit
Here, Selling Price per Unit = $40
Profit Margin = 16% of the Investment in Product
Investment = $ 300,000
Profit Margin = 16% × 300,000
= $48,000
Number of Units Sales = 30,000 Units
Profit Margin per Unit:
= Profit Margin ÷ Number of Units Sales
= $48,000 ÷ 30,000
= $1.6
Therefore,
Target Cost per Unit:
= Selling Price per Unit - Profit Margin per Unit
= $40.00 - $ 1.60
= $38.40
The more debt used, the greater the leverage a company employs on behalf of its owners.
What is financial leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing.
What is financial leverage example?
Example of financial leverage usage include using debt to buy a house, borrowing money from the bank to start a store and bonds issued by companies.
Learn more about financial leverage here:
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Answer: Option A : Decreasing returns to scale because the inputs exhibit diminishing marginal returns.
Explanation:
Return to scale measures the degree of effect certain changes in the input factors(parameters) has on the output in the long run.
Also in simple words, Marginal returns in Economics describes a situation where the increasing the input or intake of a commodity leads to decrease in satisfaction (output).
Hence, for a system that it's input exhibits marginal returns, increasing the input(e.g Capital, Land) leads to decrease in output (satisfaction; Marginal returns parlance) thereby DECREASING the RETURN TO SCALE.
Answer:
Explanation:
a. Rolling resistance factor = 100 lb/ton for hauling as well return path Grade for haul route = 5%. Grade for return route = 0 From Table 14.2 – rutted dirt road – rolling resistance factor = 100 lb/ton, Rolling resistance on haul route = 100(75) = 7,500 lbs Rolling resistance on return route = 100(50) = 5,000 lbs Grade resistance, GR = % grade 20lb/ton/%grade weight on wheels (tons) Grade resistance on haul route = 5 × 20 × 75= 7,500 lbs
b. Effective (Equivalent) Grade = RR% + GR% To convert rolling resistance, RR into rolling resistance factor, RR%, divide rolling resistance by 20 (see section 14.5 in the text book) and therefore; Effective grade = + grade Effective grade while hauling = + 5 = 10% Effective Grade while returning = + 0 = 5%.
c) Considering the cycle time of the pusher and the scrapers, Scrapers to be used = = 6.4 The motivation is to keep the pusher busy all the time instead of waiting for the scraper to return If 6 scrapers are used, the pusher will be idle and the cost will be lower (since we will have 6 scrapers and 1 pusher). So is the productivity. If 7 scrapers are used, the scrapers will be idle and the productivity will be higher. So is the cost.
d)The productivity will depend on the scrapers (the pusher with idle time) which will be:
