Answer:
The correct answer is d. none of the choices.
Explanation:
A contract is an agreement, usually written, although it can also be spoken, by which two or more parties mutually commit themselves to respecting and fulfilling a series of conditions. It is a type of legal act involving two or more people and is intended to create rights and generate obligations, therefore transmitting rights and obligations to the parties that sign it.
It is governed by the principle of autonomy of the will, according to which, it can be hired on any subject not prohibited. The contracts are perfected by mere consent and the obligations arising from the contract have the force of law between the contracting parties.
Currently the contract is an economic instrument to negotiate, to meet needs. Contracts are used to agree on services, products, locations, among others.
Answer:
Freight charges paid by the purchaser
Explanation:
There are various factors which can increase or decrease the inventoriable chargers. The most important factor is the transportation charges or the freight charges which are generally paid by the purchaser. For example, if a person buys a product from eBay he will pay the delivery charges which will increase the overall cost of goods.
B. demand.
C. the Law of Supply.
D. supply.
Consumer tastes or preferences most directly impact demand, as it is driven by consumer behavior. Their preferences may also indirectly influence supply and elasticity, with changes leading to shifts in production or affecting how price changes impact demand.
Consumer tastes or preferences are most likely to have an effect on B. demand. This is due to the basic economic principle that demand is driven by consumer behavior. If consumers prefer a particular product or service, demand for that product or service will increase. On the other hand, if consumers' preferences change and they no longer want a particular product or service, demand will decrease.
Although consumer preferences could indirectly influence supply and elasticity, the most direct impact is on demand. In terms of supply, if consumers' preferences shift towards a specific product, it may prompt manufacturers to increase production, which would increase the supply. As for elasticity, when there is a strong preference or need for a product, its demand tends to be inelastic, as changes in price have less effect on the quantity demanded.
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When deciding to lease a new cutting machine or continue using the old machine, the irrelevant cost is $10,000, the selling price of the old machine. Therefore, the correct answer is option a.
This is because the selling price of the old machine is a sunk cost, meaning it has already been incurred and cannot be recovered regardless of the decision to continue using the old machine or to lease a new one.
Therefore, it should not be considered in the decision-making process. The relevant cost in this scenario is the annual savings in operating costs if the new machine is purchased, which is option (d) $3,000. This is because it represents the additional cost or savings that would result from choosing one option over the other.
The cost of the new machine, option (b) $20,000, is also relevant because it represents the additional cost of leasing a new machine compared to continuing to use the old one. By considering only the relevant costs, the decision maker can determine which option would be more financially beneficial for the company.
In this case, if the annual savings in operating costs from leasing the new machine exceeds the additional cost of leasing it, then it would be the more financially beneficial option. Otherwise, continuing to use the old machine would be the better choice.
In summary, the irrelevant cost in this scenario is the selling price of the old machine, while the relevant costs are the cost of the new machine and the annual savings in operating costs. Therefore, the correct answer is option a.
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Complete Question:
When deciding to lease a new cutting machine or continue using the old machine, the irrelevant cost is __. Explain in 180 words with the summary.
a. $10,000, the selling price of old machine
b. $20,000, cost of new machine
c. $50,000, cost of old machine
d. $3,000, annual savings in operating costs if the new machine is purchased
b. appraisal value
c. list price
d. exchange price paid