Schickel Inc. regularly uses material B39U and currently has in stock 460 liters of the material for which it paid $3,128 several weeks ago. If this were to be sold as is on the open market as surplus material, it would fetch $5.95 per liter. New stocks of the material can be purchased on the open market for $6.45 per liter, but it must be purchased in lots of 1,000 liters. You have been asked to determine the relevant cost of 760 liters of the material to be used in a job for a customer. The relevant cost of the 760 liters of material B39U is:
A. $4,522
B. $4,902
C. $4,672
D. $6,450
Answer: B
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Eunice Jean exchanges land held for investment located in Rolla, MO, for land to be held for investment located near Madrid, Spain. Her basis for the land given up is $450,000 and the fair market value of the land received is $500,000. Eunice Jean also receives cash of $45,000. ? a.What is Eunice Jean’s recognized gain?b.What is her basis for the land received?
What will be an ideal response?
Revising the budgets to include all planning decisions will improve the quality of the budgets
Indicate whether the statement is true or false
A method of analysis of proposed capital investments that focuses on the present value of the cash flows expected from the investments is termed ________
a. cash payback method b. interest rate of return c. average rate of return method d. discounted cash flow method
Which of the following occurred at Simmons?
a. It flourished each time it was acquired b. It expanded its operations with each acquisition c. It was able to eliminate debt d. None of the above