A small design agency you are a financial consultant for will be creating client websites and wants to purchase a web server so they can host the sites themselves. How will you advise them on this purchase?
What will be an ideal response?
They should understand the concept or model of total cost of ownership: the costs will go beyond the cost of the server, but they will also need to purchase the server software, along with any application software they will be using. They will also need someone in their IT department to manage and maintain the computers. They will also incur facilities costs for running the computer. They need to have a backup plan should the server fail. The design agency will need to add up all the potential costs and risks. Additionally, they need to prepare for the possibility they may need more servers. Will they eventually have to run and maintain their own server farm? What about scalability? What if one of their clients' sites is more popular than anticipated and the server has difficulty handling the load? How quickly can they add servers or processing power? The company should look at co-location, web hosting services, and service providers to see if their needs will be better met this way.
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Which of the following is notone of the four basic financial statements?
a. balance sheet b. statement of cash flows c. statement of changes in financial position d. income statement
A foreign corporation is one that is incorporated in another nation
Indicate whether the statement is true or false
Below is a T-account for inventory.InventoryJan 1.25,000 Mar. 2558,00062,000Apr. 24Sep. 3072,00069,000Oct. 5 ? Which of the following is true?
A. Inventory purchases during the year had a cost of $130,000. B. Inventory sold during the year had a cost of $131,000. C. The ending balance of inventory is $24,000. D. All of the other answer choices are correct.
Sonora, Inc. is launching a new product that it estimates will sell for $25 per unit. Annual demand is estimated to be 70,000 units. Sonora estimates that using its current manufacturing technology, it can manufacture the units for $23 per unit, but if it purchases a new machine, the units can be manufactured for $22 per unit. Sonora has a target profit of 20% return on sales. Under target costing, what is the target cost for the new product?
A. $25 B. $23 C. $20 D. $22