A Company Is Considering the Purchase of a New Machine

question 58

Multiple Choice

A company is considering the purchase of a new machine for $48,000.Management predicts that the machine can produce sales of $16,000 each year for the next 10 years.Expenses are expected to include direct materials,direct labor,and factory overhead totaling $8,000 per year plus depreciation of $4,000 per year.The company's tax rate is 40%.What is the approximate accounting rate of return for the machine?

• A) 13%.
• B) 17%
• C) 8%
• D) 27%
• E) 10%

Comprehend the establishment and significance of conditioned reinforcers in the learning process.

Recognize the role of intrinsic motivation and its influence on behavior.

Grasp the principles of operant conditioning, including shaping and avoidance learning.

Identify and explain learned helplessness, including its causes and effects.

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Definitions:

Partial Billings

Invoicing method where a customer is billed incrementally for partially completed work, often used in long-term projects.

Completed-Contract Method

An accounting technique where revenue and expenses of a long-term contract are recorded only when the project is completed.

Construction In Progress

An accounting term for the financial balance of construction costs attributed to assets under construction that have not yet been completed.

Realization

The process of converting non-cash assets into cash or recognizing revenue when goods or services are delivered, generating measurable income.