A company purchases a remote site building for computer operations. The building will be suitable for operations after some expenditures. The wiring must be replaced to computer specifications. The roof is leaky and must be replaced. All rooms must be repainted and recarpeted and there will also be some plumbing work done. Which of the following statements is true?Group of answer choicesThe wiring is part of the computer costs, not the building cost.The cost of the building is the purchase price of the building, while the additional expenditures are all capitalized as Building Improvements.The cost of the building will include the cost of replacing the roof.The cost of the building will not include the repainting and recarpeting costs.

The total cost of production includes all of the outlays incurred for the acquisition of ______.Multiple choice question.outputsinputs

Which statement correctly describes a direct cost?

Dall is a computer brand that is operating in a perfectly competitive market. Dall has to pay rent for the store that they rented for retail sales. They have to pay rent regardless of how many computers they sell. The cost of materials for computers however is dependent on how many computers they produced. Assume rent and cost of materials are the only costs incurred by Dall. Select the item from the list provided to make the following statements true. - The rent is an example of fixed cost for Dall. The average fixed cost of Dall will __________ as production increase. - If Dall wishes to maximise their profit, they should produce a quantity of computers where their ______________ equals the market price. . - Assume that market price drops below the minimum average variable cost of production for Dall. This implies that Dall is making a/an ___________. 1. marginal cost 2. fixed cost 3. increase 4. economic loss 5. normal profit 6. economic profit 7. remain constant 8. average variable cost 9. decrease then increase 10. super-normal profit 11. decrease 12. opportunity cost

Multiple Choice QuestionA company currently makes a component used in production. The per unit costs incurred to make the component include: Direct materials: $5; Direct labor: $2; Overhead: $4; Total cost: $11. Twenty-five percent of the overhead costs are considered incremental. The company can purchase the component from another source for $10. The company should do which of the following?Multiple choice question.The company can be indifferent because incremental costs are $10 and the purchase price is $10.The company should buy the components to save $2 per unit.The company should make the components because incremental costs are $2 less than the purchase price.The company should buy the components to save $1 per unit.

Which of the following is not included in the total effort cost?Costs of lunch time foodCosts of air conditioning and lighting in the office spaceCosts of networking and communicationsCosts of support staff