Avoidable costs are important for
A) sales mix decisions.
B) pricing decisions for special orders.
C) sell-or-process-further decisions.
D) decisions to eliminate unprofitable segments.
D
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Exhibit 20-5 The Baltimore, Inc entered into a five-year lease with the Waugh Chapel Company on January 1, 2016. Baltimore, the lessor, will require that five equal annual payments of $25,000 be made at the beginning of each year. The first payment will be made on January 1, 2016. The lease contains a bargain purchase option price of $12,000, which the lessee may exercise on December 31, 2020
The lessee pays all executory costs. The cost of the leased property and its normal selling price are $95,000 and $118,236, respectively. Collectibility of the future lease payments is reasonably assured, and the lessor does not expect to incur any future costs related to the lease. Present value factors for a 7% Present value of $1 for n = 1 0.934579 Present value of $1 for n = 5 0.712986 Present value of an ordinary annuity for n = 5 4.100197 Present value of an annuity due for n = 5 4.387211 ? Refer to Exhibit 20-5. If Baltimore requires a 7% annual return, what is the correct amount that should be credited to Unearned Interest: Leases on January 1, 2016, by Baltimore (round the answer to the nearest dollar)? A) $15,320 B) $18,764 C) $22,495 D) $43,236
A company that tracks inventory and places an order for a lot size Q when the inventory declines to the reorder point (ROP) is using
A) continuous review. B) daily review. C) occasional review. D) periodic review.
The rate of return available on the next best investment alternative for the saver refers to the
opportunity cost of funds. Indicate whether the statement is true or false
Public water systems operators must come as close as possible to meeting the Environmental Protection Agency's standards by using any available technology
Indicate whether the statement is true or false