Answer:
A sunk cost is the correct answer to this question.
Explanation:
Sunk cost:- Sunk costs are those expenses that have been accumulated in the past and are thus in some way unrelated to judgment-making.
In the question referred to above, the company has already made $14 to produce. This cost will be inconsequential even if the company makes the units as it is or procedures them further.
As a result, $14 is a sunk expense.
Other options are incorrect because they are not related to the given scenario.
Answer:
The correct answer is False.
Explanation:
This statement that, an advantage of FIFO is that it assigns the most recent costs to cost of goods sold and does a better job of matching current costs with revenues on the income statement, is not correct.
Under fifo method the most recent cost is assign to closing not COGS. It is LIFO method (last in first out ) in which the most recent costs is assign to cost of goods sold. Under the fifo method cost that is incurred first is charged first to COGS.
Answer:
FCFE: 99
Explanation:
FCFE: cash flow from operation - CAPEX + borrowing
we calcualte the cash flwo form operation using the indirect method:
net income - preferred dividends = available for common stock
income = 125 + 14 = 139
net income 139
depreciation expense 50
change in working capital (30)
cash flow from operation: 159
CAPEX will be the long term assets investment
investment on fixed capital<u> 100 </u>
CAPEX 100
net borrowing 40
159 -100 + 40 = 99
Answer:
c. When ordering or setup costs increase, Economic Order Quantity increases
Explanation:
In inventory there are two types of review systems used to replenish stock, the periodic inventory and continuous inventory.
Continuous inventory involves ordering the same quantity of a good in each order. However the rate at which goods are replenished varies based on monitoring of level of goods. Orders are made when inventory gets to a certain level.
In this instance when there is an increase in ordering or setup there needs to be allocation of a higher amount for orders. The additional cost is added to the economic order quantity
Answer:
An Assignment
Explanation:
Assignment in contract occurs when a party to a contract transfers the contract's obligations and benefits to another party so that the new party can take over the contacts obligation and right.This is guided by an assignment agreement that shows the intent to transfer the rights and obligation.
The process of contract assignment involves the assignor and the assignee. The assignor is the party that transfers its right and obligation while the assignee is the party that receives the right and obligation
