The Costs to Do Each of the Three Jobs on Three

question 70

Essay

The costs to do each of the three jobs on three alternate pieces of equipment are given below.Determine the job-equipment combination that will minimize total cost.

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Definitions:

Inventories

Assets held for sale in the ordinary course of business, or in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process.

Cash Payment

Money that is paid out by a business, often documented by a cash disbursement journal.

Direct Method

An approach to reporting cash flows from operating activities which lists major classes of gross cash receipts and payments.

Cash Flow

The sum of funds moving into and out of a company, particularly influencing its liquidity.