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Economics, Accounting & Business: Post your doubts here!

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Yc3sAcc.png

Can someone explain how its C?
O/N/2012 V32
what the hell is this???
 
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Expected cash flow w/o equipment = (180000)
Expected Discounted cash flow when purchased = (65000)

Incremental savings on the negative cash flow = 180 - 65 = $67000 so the ans is C. BY the way Nice pic BRO!
o_O how man ? can u explain the last line again ?
 
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exactly my thought :ROFLMAO:
o_O how man ? can u explain the last line again ?
just think generally, will you buy anything if you know that the cost will be more than before?

No! ryt, so we will calculate the expected gain or decrease in cost as the result of that machine. Real gain will obviously calculated from discounted factor, so difference the cost without the machine and the cost with the machine.
 
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Yea but that difference is supposed to be taken from discounted, not 180 like panorama said.. must be a typo...
 
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hey guys, i need help in question 20 w06 paper 3.
Q. the data relates to two different levels of output in a department:
machine hours: 16000 20000
overheads: 214000 230000
what is the amount of fixed overheads?
 
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hey guys, i need help in question 20 w06 paper 3.
Q. the data relates to two different levels of output in a department:
machine hours: 16000 20000
overheads: 214000 230000
what is the amount of fixed overheads?
Use high low method
change in overhead/change in machine hour

230000 - 214000/20000 - 16000 = $4 <= this is the variable cost
Now to find fixed cost, subtract variable cost.
16000 x 4 = 64000
214000 - 64000 = $150,000
 
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for q3 closing stock of year 1 was overstated by 2000
when closing stock is over valued the profits decrease and cost of goods sold increase for that year
so cost of goods sold will be 240 +2 = 242 and profit will be 30 - 2 = 28
Now the closing stock of year 1 is the opening stock of year 2
when opening stock is overvalued the profits increase and cost of goods sold decrease
so the profit will be 40 + 2 = 42 and cost of sales will be 320 - 2 = 318
answer is C
 
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