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In manufacturing metal sheets, three processes are involved (process 1. process 2 and process 3). An error was made in Process 2 which made 50%
In manufacturing metal sheets, three processes are involved (process 1. process 2 and process 3). An error was made in Process 2 which made 50% of production in process 2 unusable for further processing. The production manager has decided to scrap the defective products. The costs incurred in disposing the scrap can be categorised as: O Environmental internal failure costs Environmental prevention costs O Environmental external failure costs Environmental detection costsA company has $22min worth of capital, and a cost of capital of 12%. Its profit after taxes for the current year was $3min. In order to calculate the Economic Value Add, the company has adjusted its profit to $4min and its capital to $24min. What is the EVA? 120,000 O 360.000 O 1.12 min O.4 minWhen is using a market-based transfer price not appropriate? When a cost + markup transfer price is not available When an arms-length price is not available O When the market is perfectly competitive When the focus is on divisional performanceAn energy company would like to sell a new product, the iThermo. The research and development of the product is estimated to be E35.000. The iThermo is set to retail at 105, at which price the company is hoping to sell 5,000 units in total. Production can benefit from existing machinery and is estimated to be E80 per unit. End of life costs are expected to be E5,000. What is the life cycle cost for every iThermo? E17.00 E25.00 E87.00 O E88.00
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