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2 years ago

All of the following are challenges of outsourcing, except:

Business

1 answer:

Lorico [155]2 years ago

5 0

Answer:

The correct answer is D

Explanation:

Outsourcing is the term which is defined as the contract or an agreement in which one company hires another company for being responsible or accountable for the existing or planned activity or operation which could be done internally and sometimes, it include the transferring of the assets and employees from one business to another.

So, the outsourcing challenges involve or comprise of the confidentiality, competitive edge and the length of the contract. Therefore, it does not decrease the expense and frustration in relation to retaining and hiring the employees.

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Early in its fiscal year ending December 31, 2021, San Antonio Outfitters finalized plans to expand operations. The first stage

WARRIOR [948]

Answer:

1) assets basis:

land = $1,221,151

equipment = $462,000

furniture and fixtures = $308,000

parking lots and landscaping = $370,000

building = $11,241,600

2) interest expense:

interest on notes payable issued to buy land = $52,812

interest expense on other notes payable = $479,733

total = $532,545

Explanation:

the basis of the land (not depreciable):

$370,000 paid in cash
PV of notes payable = $770,000 / 1.08² = $660,151
closing costs = $37,000
demolition of existing structures = $87,000
land clearing and grading = $67,000
total = $1,221,151

Demolition costs as well as land grading and clearing add to the basis of the land, they are not included as part of construction costs. Therefore, they cannot be capitalized and added to the building's basis. The land is one asset and the building is a separate one, you cannot mix them. Only construction costs incurred when building the building (I don't know how else to say it) can be considered as accumulated expenditures for interest capitalization. The same applies to land improvements, they cannot be included in the construction's accumulated expenditures, they are separate assets.

interest expense on notes payable = $660,151 x 8% = $52,812

basis of equipment, furniture and fixtures (depreciable assets):

equipment = ($522 / $870) x $770,000 = $462,000
furniture and fixtures = ($348 / $870) x $770,000 = $308,000

parking lots and landscaping (depreciable land improvements):

$370,000

total building construction expense during 2021:

May 1 : $3,750,000
July 30: $2,350.000
September 1: $1,920,000
October 1 : $2,820.000
total = $10,840,000

weighted construction expenditures 2021:

May 1 : $3,750,000 x 8/12 = $2,500,000
July 30: $2,350.000 x 6/12 = $1,175,000
September 1: $1,920,000 x 4/12 = $640,000
October 1 : $2,820.000 x 3/12 = $705,000
total = $5,020,000

capitalized interests = $5,020,000 x 8% = $401,600

basis of building:

total construction expenses = $10,840,000
capitalized interests = $401,600
total = $11,241,600

interest expense on other notes payable = ($6,100,000 x 8% x 8/12) + ($6,950,000 x 8%) - $401,600 = $479,733.33 ≈ $479,733

6 0

2 years ago

Xena and xavier form the xx llc. xena contributes cash of $20,000, land (basis = $40,000; fair market value = $25,000), equipmen

brilliants [131]

Answer: $0 equipment, $20,000 land, $30,000 inventory, $90,000 partnership interest.

Explanation: The asset basis in the partnership between Xena and Xavier is the same same their basis. In the scenario above, Xena's basis is the same as Xena's partnership basis in asset.

Xena's asset basis include;

Cash = $20,000

Land basis = $40,000

Inventory basis = $30,000

Equipment basis = $0

Therefore Xena's basis in the partnership interest :

$(20,000 + 40,000 + 30,000 + 0) = $90,000

4 0

2 years ago

A 10 percent increase in income leads to a 15% decrease in the quantity of macaroni and cheese demanded but no change in the pri

AlekseyPX

Answer:

Macaroni and cheese is an inferior good.

Explanation:

From the information given in the question, we can assume that macaroni and cheese are considered as an inferior good for this consumer because there is an inverse relationship between the income level of this consumer and the quantity demanded for macaroni and cheese.

If there is 10% increase in the income of an individual then as a result quantity demanded of macaroni and cheese decreases by 15% and the price of this good remains constant. This shows that macaroni and cheese is an inferior good.

6 0

2 years ago

The Ralston Company manufactures a special line of graphic tubing items. The company estimates it will sell 85,000 units of this

adoni [48]

Answer:

Production budget = 75,000 units

Explanation:

<em>The production budgeted for a particular period is the expected units to be produced after adjusting the sales budget figures for opening and closing inventories. </em>

Production = Sales volume + closing inventory - opening inventory

Production budget for 2016

=85,000 + 20,000 - 30,000

= 75,000 units

8 0

2 years ago

In the long run a company that produces and sells laundry detergent incurs total costs of $2,500 when output is 1,250 units and

Schach [20]

Answer:

The correct answer is a) economies of scale

Explanation:

Economies of scale are when a company increases the production or associate with other company, to obtain a better price to reduce the cost of production. This happens because costs are spread over a larger number of goods.

Example:

Company A, require apples to produce his final product. And the provider has a price for each apple, however, if you buy more than 100, he gives you a discount of 5%. Company A can´t afraid this, because it just needs 50 apples per production.

The solution for the company is trying to expand the market, become efficient, to duplicate his production and obtain the discount. Or associate with Company B that needs 50 apples too, to obtain the discount and reduce his cost. (1 big purchase is better than 2 small purchases)

8 0

2 years ago