Answer:
The correct answer is (C)
Explanation:
Economics is all about allocating limited resources to attain maximum utility. In that regard, efficiency can be achieved by giving contracts to companies with higher productivity. These companies are all about attaining maximum productivity by investing limited resource. More productivity will increase the utility, and that will improve economic efficiency. So it is critical to give projects and contracts to certain companies which can increase the overall productivity.
Answer:
Head Office Cost Allocations
Explanation:
Usually Projects have Head Office costs that are allocated to them.
Head office costs allocated to projects will be the same for the choices of alternatives (replacing or not replacing the machine).
The Head office costs are a costs that is incurred at Head office as well.
Thus, Head Office Costs allocations are <em>irrelevant</em> and must not be included in the analysis.
Answer:
Explanation:
A capitalized cost of an asset is made up of
1 . Purchase price import duties and non refundable taxes less trade discount and rebate
2. Direct cost of bringing the asset to its present position
3. Fair value given in exchange for the the assets
Cost of Computer
Purchase Price - $10,000
Fair value of White common stock - $4,200
Installation cost - $ 700
Shipping cost - $ 500
Total Cost - $15,400
Answer:
7.52689%
Explanation:
Ervin Company:To break even with an 93% success rate, Ervin will need to recoup
$1/0.93=$1.0752689.
Hence:
Winthrop should charge a return greater than ($1.0752689/$1.00) -1
=($1.0752689)-1
=0.0752689×100
=7.52689%
Therefore th eloan rate Winthrop Enterprises should charge Ervin Company for loans will be 7.52689%
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