Answer:
c. the average rate of return method includes the entire amount of income earned over the life of the proposal.
Explanation:
the average rate of return is a capital budgeting method.
Average rate of return = Average net income / Average book value
Average book value = (cost of equipment - salvage value) / 2
From the above formula, it can be seen that the entire income earned over the life of the project is used when calculating average rate of return.
the average rate of return method does not consider the timing of the expected cash flows. or use present values unlike the net present value and internal rate of return.
Net income is used instead of expected cash flows when calculating ARR
The total labor cost of variance is the difference of the two presented costs. The actual cost of production is presented below,
actual cost of production = $198,000
The other cost can be calculated through the equation,
cost of production = (3 hours/labor u)(($8/unit)(8,000) = $192,000
Thus, the total labor cost variance is approximately $6,000.
Answer:
I think it's make decisions
Explanation:
"CRM is a set of methods that companies use to <em>understand </em>customers. These methods <em>make decisions</em> regarding the selected customer segments"
Answer:
Option (b) is correct.
Explanation:
Given that,
Total Overhead Cost = $477,000
Number of Units of Product XY = 72,000
Number of Units of Product M = 108,000
Total overhead allocated to Product XY using the current system:
= (Total Overhead Cost ÷ Number of units produced in total) × Number of Units of Product XY
= ($477,000 ÷ 180,000) × 72,000
= $2.65 × 72,000
= $190,800
Answer: The correct answer is "d. all of the above"
Explanation: In a perfectly-competitive industry a firm have no incentive to enter or exit the industry when:
- market price is equal to minimum long-run average cost.
- each firm earns a normal return.
This happens because in perfect competition companies reach a long-term equilibrium where extraordinary benefits are eliminated.
