Which of the following is an example of a direct cost on an IT project
Salary of the project manager and subcontractor expenses
Property taxes paid by the company
Salary cost of accounting personnel
Electricity and heating
In: Accounting
Which of the following is NOT an example of a cost in a social relationship?
Multiple Choice
the time spent with a friend
the expense involved in going on a road trip with friends
helping a friend move to his new apartment
having friends listen to you talk about what’s going on in your life
In: Psychology
Charlotte's Crochet Shoppe has 14,300 shares of common stock outstanding at a price per share of $75 and a rate of return of 11.61%. The company also has 280 bonds outstanding, with a par value of $2000 per bond. The pre-tax cost of debt is 6.13% and the bonds sell for 97.2% of the par.
What is the weighted average cost of capital (WACC), if the tax rate is 40%?
In: Finance
Solomon Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the segment is eliminated, the building it uses will be sold.
Required
Determine the amount of avoidable cost associated with the segment.
| Advertising expense | $ | 89,000 | |
| Supervisory salaries | 178,000 | ||
| Allocation of companywide facility-level costs | 54,000 | ||
| Original cost of building | 121,000 | ||
| Book value of building | 54,000 | ||
| Market value of building | 87,000 | ||
| Maintenance costs on equipment | 82,000 | ||
| Real estate taxes on building | 12,000 | ||
In: Accounting
What is cost of production? Explain with suitable example.
In: Economics
Define discretionary and committed fixed cost with example.
In: Accounting
1–5 What effect does an increase in the activity level have on—
a. Average fixed costs per unit?
b. Variable costs per unit?
c. Total fixed costs?
d. Total variable costs?
1–6 Define the following terms: (a) cost behavior and (b) relevant range.
1–7 What is meant by an activity base when dealing with variable costs? Give several
examples of activity bases.
1–8 Managers often assume a strictly linear relationship between cost and the level of activity.
Under what conditions would this be a valid or invalid assumption?
In: Accounting
What does the concept of “opportunity cost” mean?
In: Economics
In: Economics
What are the affects of net income as a realized cost?
In: Accounting