Which of the following statements best characterizes delivery reliability?
A) a company that always delivers on the same day of the week
B) a company that always delivers at the promised time
C) a company that delivers more frequently than its competitors
D) a company that delivers faster than its competitors
E) a company that has a computerized delivery scheduling system
B
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Mulcahey Automobiles Company fabricates automobiles
Each vehicle includes one wiring harness, which is currently made in-house. Details of the harness fabrication are as follows: Volume 800 units per month Variable cost per unit $7 per unit Fixed costs $12,000 per month An Indonesian factory has offered to supply Mulcahey with ready-made units for a cost of $15 per wiring harness. Assume that Mulcahey's fixed costs could be reduced by $4,000 if it outsources and that Mulcahey will not be able to use the excess capacity in any profitable manner. If Mulcahey decides to outsource, monthly operating income will ________. A) increase by $12,000 B) decrease by $12,000 C) increase by $5,600 D) decrease by $2,400
List two strengths and one weakness of the accounting rate of return capital budgeting method
What will be an ideal response