Answer:
e. accessory equipment
Explanation:
Accessory equipment are the goods and services that are used by firms and organizations to complete their daily operation. They consist of products and services which are used in the production processes. Likewise, they are considered import which makes them expensive compared to other capital goods. These goods can easily be replaced without affecting the whole process.
Answer:
increasing then decreasing
Explanation:
production level total cost average total cost
4,000 $8,000 $2.00
4,200 $8,200 $1.95
4,400 $8,800 $2.00
Returns to scale measure the change in productivity, or how much input is needed to produce a unit of output.
- increasing returns to scale: output increases in a greater proportion than inputs
- constant returns to scale: output increases in the same proportion as inputs
- decreasing returns to scale: output increases in a lower proportion than inputs
Since first the average total cost decreased, total output increased in a greater proportion than inputs ⇒ increasing returns of scale. But then the situation reversed and total output increased in a lower proportion than inputs ⇒ decreasing returns of scale.
Depreciation is a way not only to recognize the lost value over time of an asset, but also a way to recognize the expense of the asset over time. To this end, we want to see the value of the asset get smaller, and a piece of the asset on the the income statement ever period.
The depreciation base is 95,000 -5,000 = 90,000, and the depreciation period is 90,000/15,000 = 6 years.
The journal entry every year will be
Dec. 31
Debit: Depreciation expense 15,0000
Credit: Accumulated Depreciation (15,000)
Accumulated depreciation is a *contra-asset* account on the balance sheet that reduces the value of the the depreciable asset.
Calculating average cost of steak initially when only 5000 pounds was produced
Average cost= 50000/5000
AC= 10$
Now when 1 pound is added only 9$ is added in total cost so marginal cost
MC= 9$
From above calculations we can see that AC>MC
so we can say that the average cost of production is greater than marginal cost so it will be beneficial to produce more
Answer:
The total cost at 9000 anchor is $473400
Explanation:
To come up with the cost equation used by the manager, we need to find the variable cost per unit.
The total cost at production level of 5300 is = 5300 * 54 = $286200
Out of the total costs, $18000 are fixed.
Thus, variable costs at production of 5300 is = 286200 - 18000 = $268200
The variable cost per unit is = 268200 / 5300 = $50.60
Let x be the number of anchors produced.
The cost equation is = 18000 + 50.60x
At 9000 anchors, the total cost will be,
Total cost = 18000 + 50.60 * (9000) = $473400
