What is the equivalent annual cost (EAC) of this equipment?

Q: What is the Equivalent Annual Operating Cost?

A: Equivalent annual cost (EAC) is the yearly expense of owning, managing, and operating an asset over…

Q: What are life-cycle costs? How do these costs relate to the production life cycle?

A: Life cycle cost is the summation of all costs related to a product, structure, system, or service…

Q: Which one of the following is a fixed cost? a. Raw material costs b. Salary with commission c.…

A: A fixed cost is one that does not adjust in the short term, even though a company's sales volume or…

Q: Explain the term Annual Effective Yields?

A: Annual effective yield: Annual effective yield is defined as the simple rate of interest that gives…

Q: What are the factors affecting equipment costs?

A: Equipment cost is the total cost incurred to bring the equipment in the useable state. It includes…

Q: How is the total payment under a unit-price contract determined? When is such a contract likely to…

A: Unit price contract is a common pricing contract which is based on each unit or task of the…

Q: Which of the following is not included in the calculation of the lifecycle cost of a product?…

A: Cost of disposal refers to the additional expense incurred as a result of the disposal of an asset,…

Q: Write the various applications that call for annual-worth analysis techniques?

A: Annual worth analysis is the analysis which is done by the managers before taking capital budgeting…

Q: C-V-P

A: Cost-volume-profit or CVP analysis is a cost accounting method that looks at the effects that…

Q: How do i caculate the fixed cost

A: The objective of this question is to understand how to calculate the fixed cost in a business. Fixed…

Q: Explain with example Annual Equivalent Cost Comparison with Unequal Project Lives?

A: Equivalent annual worth technique is the analysis technique that is used for taking capital…

Q: What is the effective annual rate (EAR) and what is the purpose.

A: The effective Annual Rate (EAR) is the rate of interest actually earned on an investment or paid on…

Q: total accrued cost of the project includes all the direct cost.  true or false?

A: Accrued expenses are those expenses that are identified before it has been paid. Expenses are…

Q: Explain the Incremental Cost of Refinancing?

A: Answer: If the interest rate on the higher sum of borrowing is greater, then the average cost of…

Q: After all costs have been accounted for, how much money will be made to cover them

A: The Answer :

Q: Does the accrual accounting rate-of-return method consider income earned throughout a project's…

A: The accrual accounting rate-of-return(ARR) formula splits the average income of an asset by the…

Q: What does the annual effective yield represent?

A: Yield refers to the rate of return that is received by the owner of the security who has invested in…

Q: What is the annual profit?

A: The cost-volume profit analysis deals with the cost of the product and the profit generated with the…

Q: What effect does an increase in volume have on—c. Total fixed costs?

A:

Q: Explain APY (annual percentage yield)?

A: APY (Annual Percentage Yield):   It is the real return rate that is earned on an investment during a…

Q: What are the three types of investment flows associated with buying apiece of equipment?

A: Investing Activities: It denotes to the actions carried out by a corporation for attainment of…

Q: What is the Annual Equivalence Analysis?

A: The criteria for annual equivalent analysis provides a basis for computing the value of an…

Q: Define the following concepts: a)Prime cost    b) Non production cost         c)Total cost

A: Cost is the monetary value of expenditures for raw materials, technology, supplies, services, labor,…

Q: Machine Replacement Decision A company is considering replacing an old piece of machinery, which…

A: Required (a)Differential AnalysisContinue with Old Machine (Alt. 1) or Replace Old Machine (Alt.…

Q: What is Annual-payments option?

A: The annual payment option is the obligation to pay the amount to the receiver annual instead of the…

Q: What are the indirect annual costs for condensing systems?

A: Indirect cost is the cost that is not directly involved in the production process of the company. It…

Q: True or false Amortization is the spreading out of a cost over a period of time  ?

A: Cost refers to the amount incurred by the entity over a particular item of expense, asset or…

Q: Describe the specific process required by the unit cost comparison for the use of annual worth…

A: A unit cost comparison is required for the use of annual worth analysis because companies often…

Q: What is the impact of changing transportation costs on incremental analysis?

A: 2. Impact on Pricing and Revenue:-Product Pricing: Fluctuations in transportation costs can affect…

Q: Interpret the figure below: find (a) Presen additional maintenance cost, (b) Present worth of all…

A: Present value is the equivalent value today of the future cost based on the time period and interest…

Q: How can we calculate ownership (capital) cost, annual operating cost, and equivalent annual cost?

A: Ownership cost is the cost of owning a particular asset/equipment and is usually the purchase price…

Q: Give an example on annual rate of return method

A:

Q: What does period cost include

A: Period costs are the expenses which are typically related to passage of time and not to any…