Jarett Motors is trying to decide whether it should keep its existing car washing machine or purchase a new one that has technological advantages (which translate into cost savings) over the existing machine. Information on each machine follows: Old machine New machine Original cost $9,000 $20,000 Accumulated depreciation 5,000 0 Annual cash operating costs 9,000 4,000 Current salvage value of old machine 2,000 Salvage value in 10 years 500 1,000 Remaining life 10 yrs 10 yrs Refer to Jarett Motors. The $4,000 of annual operating costs that are common to both the old and the new machine are an example of a(n):________ a. opportunity cost b. irrelevant cost c. future avoidable cost d. sunk cost

Answers

Answer 1
Answer:

Answer:

The correct option is b. irrelevant cost.

Explanation:

An irrelevant cost can be described as an expense that will not be affected by the decisions of thee management. Therefore, irrelevant costs are those that will not change if you choose one option over another in the future.

Therefore, the $4,000 of annual operating costs that are common to both the old and the new machine are an example of irrelevant cost. This is because the 4,000 of annual operating costs will not be affected or will still be incurred whether Jarett Motors managment decide to keep its existing car washing machine or purchase a new one.

Therefore, the correct option is b. irrelevant cost.


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Gonzalez Company acquired $153,600 of Walker Co., 8% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Gonzalez Company sold $43,200 of the bonds for 98.Journalize entries to record the following in Year 1 (refer to the Chart of Accounts for exact wording of account titles):a. The initial acquisition of the bonds on May 1.b. The semiannual interest received on November 1.c. The sale of the bonds on November 1.d. The accrual of $1,300 interest on December 31.
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Variance Analysis Question The Glass Vessel Company has established the following budget for producing one of its handblown vases: Materials (silica) 2 pounds @ 1.25 per pound Labor 1.5 hours @ $15.00 per hour In March of the most recent year, Glass Vessel produced 300 vases using 650 pounds of materials. Glass Vessel purchased the 650 pounds of materials for $845. Actual total labor costs for March were $7,200, which entailed 480 hours of labor. Please answer both of the following questions:Materials (silica) 2 pounds @ 1.25 per poundLabor 1.5 hours @ $15.00 per hour1. What was Glass Vessel’s flexible budget variance for materials in March? (As part of your answer, please indicate whether this variance was favorable or unfavorable.)2. What was Glass Vessel’s labor efficiency/usage variance for March? (As part of your answer, indicate whether this variance was favorable or unfavorable.)Must show work
R. C. Barker makes purchasing decisions for his company. One product that he buys costs $50 per unit when the order quantity is less than 500. When the quantity ordered is 500 or more, the price per unit drops to $48. The ordering cost is $30 per order and the annual demand is 7,500 units. The holding cost is 10 percent of the purchase cost. If R. C. wishes to minimize his total annual inventory costs, he must evaluate the total cost for two possible order quantities. What are these two possible quantities?a. 300b. 306c. 500d. 200e. None of the above

The Gorman Group issued $870,000 of 11% bonds on June 30, 2021, for $944,646. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 10%. Interest is paid semiannually on December 31 and June 30. Required: Complete the below table to record the company's journal entry. 1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June 30, 2021, interest on December 31, 2021 and interest on June 30, 2022 (at the effective rate). Calculation Req 1 to 3 Complete the below table to record the company's journal entry. (Round intermediate calculations and final answers to the nearest whole dollar. Enter interest rate to 1 decimal place. (i.e. 0.123 should be entered as 12.3).)

Answers

Answer:

Explanation:

December 31, 2018 Amount. Interest Rate Total Interest expense $944,646 x 5.0% = $47,232.3 Cash. $870,000 x 5.5% = $47,850 of premium on bonds $618

June 30, 2019AmountInterest Rate

Total Interest expense $944,646 x 5.0% = $47,232.3

Cash$870,000 x 5.5% = $47,850

of premium on bonds $ 464 No Date General Journal Debit Credit 1 June 30, 2018 Cash 944,646 Bonds payable 870,000 Premium on bonds payable 74,646 December 31,2018 Interest expense 47,232.3 Premium on bonds payable 618 Cash 47,850 June 30, 2019 Interest expense 47,232.2 Premium on bonds payable 618 Cash 47,850 Record the issuance of the bond on June 30, 2018.Record the interest on December 31, 2018 (at the effective rate). Record the interest on June 30, 2019 (at the effective rate). Explanation 2. December 31, 2018 Interest expense (5% × $944,646) = $47,232.3 Cash (5.5% × $870,000) = $47,850 3.June 30, 2019Interest expense (5% × [$944,646 – $618]) = $47,201.4

Cash (5.5% × $870,000) = $47,850

Which of the following factors has the LEAST influence on an individual’s core belief system? a. Physical appearance c. Religious background d. Family upbringing e. Life experiences Personality

Answers

Answer:

a. Physical appearance

Explanation:

The Physical appearance of a person is as a result of the genetic make up of the individual. This factor barely has an influence on an individual’s core belief system.

Religious background is a key element of individual’s core belief system as it forms the basis of one's belief about God, life, fate and destiny.

Family upbringing forms the basis of one's belief as the individual grows. The influence of the members of a family forms a part of the individual's core belief.

Life experiences as well forms a key part of our belief system and the same goes for personality.

If the demand curve is linear and downward sloping, which of the following statements is not correct? Select one: a. Starting from a point on the upper part of the demand curve, an increase in price leads to a decrease in total revenue. b. Different pairs of points on the demand curve cannot result in different values of the slope of the demand curve. c. Different pairs of points on the demand curve can result in different values of the price elasticity of demand. d. Demand is more elastic on the lower part of the demand curve than on the upper part.

Answers

Answer:

The correct answer is option d.

Explanation:

If a demand curve is linear and downward sloping, different points on the line can show different values of slope. The value of slope will be equal to the ratio of change in price to change in quantity demanded. The value of slope will be the same throughout the line.

The price elasticity is the ratio of change in quantity to change in price. The price elasticity can be different for different points on the demand curve.

The points on the lower parts are more inelastic while the points on the upper portion are more elastic. The midpoint represents unit price elasticity.

Since the upper portion is more price elastic, an increase in price will cause a more than proportionate decrease in the quantity demanded. This will cause the total revenue to decrease.

Final answer:

Statement 'b' is incorrect. The slope of a linear demand curve remains constant, irrespective of the different pairs of points chosen on the curve. The other three statements provide accurate descriptions of the properties and behaviors of a linear, downward sloping demand curve.

Explanation:

In considering a linear and downward sloping demand curve, statement 'b' is incorrect when it declares that different pairs of points on the demand curve cannot result in different values of the slope of the demand curve. This statement is inaccurate because in a linear demand curve, the slope remains constant regardless of the different pairs of points chosen.

Statement 'a' is correct because as price increases, the quantity demanded decreases, thus leading to a decrease in total revenue. Statement 'c' is also correct because different parts of the demand curve can indeed have different price elasticities. Finally, statement 'd' is correct since the elasticity of demand generally becomes more elastic, as in more responsive to price changes, the further down the demand curve you move.

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Milo receives a commission of on all sales. If his commission on a sale was , find the cost of the item he sold.

Answers

Answer: $1,256

Explanation:

Milo makes 6% on the sales that he makes.

The $75.36 that he made from this sale is therefore 6% of the cost of the item sold.

Assuming the item was x, the cost is;

6% * x = 75.36

x = 75.36/6%

x = $1,256

The cost of the item that Milo sold can be found by dividing the known commission by the commission rate. In this case, the item cost $1000.

The question of finding the cost of an item based on a known commission is a question of working backwards from the commission to the total sale amount. This can be understood as a simple mathematical problem related to percentages.

If Milo's commission was $100, and the commission rate is 10% (as mentioned in the question), then we can formulate this as x * 0.10 = $100, wherein x represents the total sale amount. To find x, we can rearrange the formula to x = $100 / 0.10, which equals to $1000. Hence, the cost of the item that Milo sold was $1000.

To find the cost of the item Milo sold, set up an equation using the commission rate and the commission earned.

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Goodwill messages include messages of thanks, recognition, and sympathy. Taking the time to write these messages gives importance to well-wishing. Which of the following are characteristics of effective goodwill messages? Check all that apply.

(A) Specific
(B) Sentimental
(C) Short
(D) Serendipitous
(E) Spontaneous

Answers

The characteristics of an effective goodwill messages includes the element of specific, spontaneous and short.

What is an effective goodwill messages?

These are kind of messages that are used in the workplace to show a sense of kindness and friendliness.

Hence, its characteristics includes the element of specific, spontaneous and short.

Therefore, the Option A, C and E is correct.

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Final answer:

Effective goodwill messages should be specific, sentimental, and short, clearly and efficiently communicating the writer's emotions and intentions.

Explanation:

The characteristics of effective goodwill messages include being specific, sentimental, and short. (A) A specific message refers to one that is detailed and direct. Instead of generic phrases, it's more effective to provide exact reasons for your gratitude or sympathy. (B) Sentimental, in this context, means that the message should touch upon emotions and feelings. It's important to create a genuine and heartfelt tone to the message. (C) Keeping the message short and to the point is often appreciated as it respects the recipient's time while effectively communicating your thoughts and feelings.

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In the future, electrical power may come from quantum nucleonics, a form of nuclear power that produces no residual radiation. The ability to use this form of power will require equipment adaptations, but it will solve the world’s need for clean and efficient power. Companies that replace inefficient sources of power with quantum nucleonics only after they are required to by the Environmental Protection Agency are operating at a(n) _____ responsibility level. Group of answer choices

Answers

Answer: legal

Explanation:

The Environmental Protection Agency (EPA) was established in so that both human and the environmental health can be protected.

Based on the information given in the question, the companies that replace inefficient sources of power with quantum nucleonics only after they are required to by the Environmental Protection Agency are operating at a legal responsibility level. It should be noted that the law will have to be obeyed by the business at this legal responsibility level.

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The following information applies to the questions displayed below.]Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:DirectLabor-Hoursper unit AnnualProductionRims 0.30 26,000 unitsPosts 0.50 70,000 unitsAdditional information about the company follows:Rims require $15 in direct materials per unit, and Posts require $11.The direct labor wage rate is $15 per hour.Rims are more complex to manufacture than Posts and they require special equipment.The ABC system has the following activity cost pools:Estimated ActivityActivity Cost Pool Activity Measure EstimatedOverheadCost Rims Posts TotalMachine setups Number of setups $ 32,900 60 140 200Special processing Machine-hours $114,800 4,000 0 4,000General factory Direct labor-hours $1,404,000 6,000 72,000 78,000c.A security guard patrols the company grounds after normal working hours.d.Purchase orders are issued for materials to be used in production.e.Modifications are made to product designs.f.New employees are hired by the personnel office.g.Machine settings are changed between batches of different products.h.Parts inventories are maintained in the storeroom. (Each product requires its own unique parts.)i. Insurance costs are incurred on theRequired:1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)Activity Cost Pool Activity RateMachine setups per setupSpecial processing per MHGeneral factory per DLHcompanyâs2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)Unit product cost of Rims Unit product cost of Posts