Answer:
$11,560
$5666.661
Explanation:
Given the following :
Bill received from accountant = $17,000
This year's marginal tax rate = 32%
Next year's marginal tax rate = 37%
After tax return on investment = 11%
After tax cost of bill is paid in December :
Billed amount * this year's tax rate
$17,000 * ( 1 - 0.32)
= $17,000 * 0.68
= $11,560
B) After tax cost of bill was paid in January:
Billed amount * next year's tax rate * PV factor
From the present value factor table;
PV factor (1 years, 11%) = 0.9009
Hence,
$17,000 * 0.37 * 0.9009 = $5666.661
Answer: Option (b) is correct.
Explanation:
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
The preferences of Pam, Pru and Pat are given. Therefore, according to their preferences, the opportunity cost of the trip to Hawaii for Pam and Pat is a cruise and for Pru is a skiing.
<span>Risk management is a
systematic process where its objectives are to identify, to assess, and to control
risks. These risks arise from operational factors and making decisions that
maintains the balance between risk costs with the mission benefits. The correct
steps are the following: First, the risk must be identified. This means that
the team must first uncover, recognize and describe the risks that might
possibly affect the project or its outcomes. Second, the risk will then be
analyzed. It is in this step that the
team must consider the consequences of each risk according to the nature of the
risk. The potential to affect project
goals will also be identified. Third, evaluation and ranking of risks will take
place. The magnitude of the risks will be part in the decision-making whether
they are acceptable or whether they are serious enough to warrant treatment.
Fourth, the risk must be treated. This is also known as the Risk Response Planning. The highest ranked risks must be identified and
plans must be made to treat or modify these so that the desirable risk levels
will be attained. Lastly, the risks
shall then be monitored and reviewed. In
this way, all the uncertainties, unpleasant surprises and barriers will be
fully monitored and if the team is determined, golden opportunities will
instead be achieved. </span>
Answer:
a. Regulatory compliance costs - Fixed cost
b. Salaries of top management and key personnel - Fixed cost
c. Cost of metal used in manufacturing - Variable cost
d. Cost of wood used in manufacturing - Variable cost
e. Mortgage payments - Fixed cost
f. Industrial equipment costs - Fixed cost
g. Interest on debt - Fixed cost
h. Postage and packaging costs - Variable cost
Explanation:
The cost which is affected by the production of units is known as variable cost. The cost which does not vary with the units produced is fixed cost. Fixed cost does not change from period to period irrespective of level of output and is usually same for a certain period. It is easy to budget for fixed costs instead of variable cost. Variable cost changes every period and is based on company's output.
