Answer:
irrelevant costs in Boise’s outsourcing = $25500
Explanation:
given data
variable costs = $80,000
fixed operating costs = $25,000
administrative overhead = $18,000
fixed operating costs reduced = 70%
to find out
The irrelevant costs in Boise’s outsourcing decision total
solution
we get here first reduction in traceable cost that is
reduction = 30% of $25,000
reduction = $7500
so irrelevant costs in Boise’s outsourcing will be
irrelevant costs in Boise’s outsourcing = administrative overhead + reduction cost
irrelevant costs in Boise’s outsourcing = $18000 + $7500
irrelevant costs in Boise’s outsourcing = $25500
Original purchase cost $15,230 $25,080
Accumulated depreciation $ 6,800 _
Estimated annual operating costs $24,950 $19,560
Useful life 5 years 5 years
If sold now, the current machine would have a salvage value of $8,490. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years.
Prepare an incremental analysis. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer:
The incremental cost is ($10,360)
Explanation:
Analysis of total cost over the 5 year period
Retain Old Machine Buy New Machine
Variable / Incremental Operating
Costs
Old Machine 124,750
New Machine 97,800
Old Machine Book Value
Retain: Annual depreciation 8,430
Buy : Lump sum written off 8,430
Old Machine Disposal (8,490)
Purchase Cost of New Machine 25,080
Total Cost 133,180 122,820
The use of new machine will result in lower cost for the next 5 years.The incremental cost is ($10,360)
Answer:
The correct answer is Both of the above (A and B).
Explanation:
The CAFR is made up of a group of financial statements that must be reported to local authorities and are reviewed by AICPA certified auditors. This document contains all the budget information from previous years and those that are projected to be completed within the following year, using simple language in order to achieve an easy understanding of the principles applied in its construction.
Answer:
The answer is option A) The CAFR has three main sections: introductory, financial, and statistical.
Explanation:
The purpose of the Comprehensive Annual Financial Report (CAFR) is to provide accurate and meaningful information concerning the City's financial condition and performance.
The CAFR consists of three sections: Introductory, Financial and Statistical. The Introductory section orients and guides the reader through the report. The Financial section presents the entity's basic financial statements as well as notes to the statements and the independent auditors' report.
Answer:
Total indirect product costs $30,750
Explanation:
The indirect product costs refer to all the costs that are associated with the manufacturing overheads and can be calculated as follows:
Electricity used in the Factory $25,000
Factory foreperson salary $3,750
Maintenance of factory machinery $2,000
Total indirect product costs $30,750
b. reissuing treasury stock
c. purchase of long-term assets by issuing bonds
d. purchase of noncash assets by issuing equity
Answer: b. reissuing treasury stock
Explanation:
Investing Activities in the Cashflow Statement refer to transactions that have to do with the buying and selling of Capital Goods such as Fixed Assets. It also refers to investments in other company bonds and stock.
Financing has to do with how the firm finances it's operations. These include long term debt and stock related transactions.
When these transactions are non-cash, it means quite rightly that no cash was exchanged and instead something else for exchanged instead of cash. For example, A non-cash Investing and Financing activity would be the purchase of long-term assets by issuing bonds.
In this question, option B being the reissuance of Treasury Stock is not a non-cash transaction. Treasury Stock is the company's own stock that it required from the market. By reissuing it, they will be doing so with cash involved. That is, people will buy the reissued shares and pay cash for them thus making it a Cash Financing Activity.
Answer:
$28,200,000
Explanation:
The computation of the total year 0 cash flow is shown below:
= Construction cost + new signage cost + street lights cost + additional net working capital
= $28,000,000 + $50,000 + $50,000 + $100,000
= $28,200,000
The land cost, marketing cost, trip study are considered as a sunk cost . Hence, it is to be ignored
So in this case we considered these above four cost in order to find out the total year 0 cash flow
Answer:
c. Internal Service Fund
Explanation:
Internal Service Fund -
It refers to the sum of amount required to track the motion of any goods and services from one department to another , is referred to as internal service fund .
The amount spend on the internal service fund is used to determine the complete cost of providing the services and goods .
For example , maintenance is an example of the internal service fund .
Hence , from the given information of the question ,
The correct answer is c. Internal Service Fund .