a-1 international company adds several features to one of its products and reduces the product's price. what is most likely to be the company's objective?

Answers

Answer 1

A-1 international company adds several features to one of its products and reduces the product's price.  The objective of the company is to meet the competition.

Competition refers to a situation when someone is attempting to outperform another person in order to win something.

It is described as a two- or more-firm activity in economics when each firm tries to persuade consumers to buy its products over those of the other firm. For instance, through providing various products, better prices, or through other techniques.

In economics, competition exists when a market has enough buyers and sellers to keep prices at a low level. Consumers have many options due to the abundance of sellers, so businesses must compete to provide the greatest rates, value, and services. Otherwise, consumers will go to the competition.

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Related Questions

quick will give brainliest Bank A has a liquidity ratio close to 30 percent. This ratio will most likely _____.


not affect the bank’s run-off rate

cause a higher than acceptable run-off rate

cause a lower than acceptable run-off rate

Answers

Quick will provide the smartest The liquidity ratio for Bank A is almost 30%. The bank's run-off will probably not be impacted by this ratio.

Quick ratio is a ratio of liquidity?

In order to determine a company's ability to meet its immediate financial obligations, analysts and investors use liquidity data called the quick and current ratios.The current ratio is calculated by dividing current liabilities by current assets.The quick ratio only considers highly liquid assets or cash equivalents as current assets.

What is a decent quick ratio?

If the company's assets can be turned into cash extremely fast, a ratio of less than 1.5 is less problematic. Although a current ratio of three or four may indicate financial health, it also raises questions about whether a corporation is ineffective at investing the money it does have.

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What are the two methods commonly used to distribute e-commerce purchases to customers?.

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Answer: post office or couriers

Direct and indirect

sales literature sent to a customer describing the investment merits of a particular investment company must be preceded by or accompanied by a current:

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sales literature sent to a customer describing the investment merits of a particular investment company must be preceded by or accompanied by a current prospectus. Hence, option a is correct.

A current prospectus must come before or be sent with sales literature outlining the benefits of a specific mutual fund as an investment to a customer. A prospectus is not required if the literature only discusses mutual funds in general and not one specific mutual fund.

The primary sales tool for the business issuing the securities (referred to as the issuer) and broker-dealers marketing the offering on the issuer's behalf is a prospectus, a written document that contains all relevant information about an offering of securities.

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The correct question is:

Sales literature sent to a customer describing the investment merits of a particular investment company must be preceded by or accompanied by a current

a. prospectus

b. registration statement

c. indenture

d. account application

Mr. D is the manager of a local walgreens. His biggest concern is to make sure that his store is always making the most profit possible. He cuts costs by focusing on certain logistical decisions. Every other day walgreens receives shipments from pepsi, evian, hershey, and numerous other manufacturers. Walgreens insists on small shipments every two days, which helps to keep their inventory costs low. What system is mr. D using at walgreens to reduce his costs?.

Answers

Mr.D is using just-in-time inventory at Walgreens to reduce his costs.

Just-in-time, or JIT, is an inventory management method in which goods are received from suppliers only as they are needed. The main objective of this method is to reduce inventory holding costs and increase inventory turnover.

A just-in-time (JIT) inventory system is a management strategy that has a company receive goods as close as possible to when they are actually needed. So, if a car assembly plant needs to install airbags, it does not keep a stock of airbags on its shelves but receives them as those cars come onto the assembly line.

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what refers to all the activities related to planning, implementing, and monitoring the wages, salaries, and benefits of employees?

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Continuing Compensation Provisions - Consolidated Comprehensive Budget Adjustment Act - provides that workers and their families are entitled to the collective health and Helps maintain insurance coverage.

Three benefits are mandated by state or federal governments: State Workers' Compensation Insurance, State Unemployment Insurance, and State Social Security. Internal equity means that wage rates should be equal for jobs with similar jobs and different for jobs with different jobs. The compensation professional uses two of her tools to make these decisions: Job analysis and job evaluation. Social Security and Medicare. unemployment insurance. Workers Compensation Insurance. Family and Medical Leave Act protection.

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cory has a low paying part-time job in the retail industry after being laid off from his position as a bank branch manager. he is considered

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Cory has a low paying part-time job in the retail industry after being laid off from his position as a bank branch manager. He is considered. underemployed.

What is an underemployed person?when members of the labor force are working part-time, irregular hours, or employment that are insufficient for their needs in terms of training or income.The state of not having enough workIf you are underemployed, you are working less than you are capable of, which may involve working less hours or in a position that doesn't fully utilize your qualifications and experience.You may be underemployed if you work fewer hours or make significantly less money than you anticipated, among other indicators.

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a firm has invested $500 in a new machine that is expected to last for the next 8 years. the machine will be depreciated on a straight line basis down to zero by the end of its 8 year life. the firm projects that the machine will generate consecutive annual cash inflows of $500 beginning in one year and will generate consecutive annual cash outflows at 280 also beginning in one year.. assuming the tax rate of 36%, determine the firm's cash flow next year

Answers

If the tax rate is given to be 36 percent, the cash flow of the firm is calculated to be $163.3 for the next year

How to solve for the cash flow

The first step that we would have to carry out would be to solve for the depreciation

The formula is give as investment / period

= 500 / 8

= 62.5 every year

Next we have to solve for Ebit. That is Earning before interest and tax. The formula is given as

EBIT = cash inflow - (cash outflows + depreciation)

EBIT = 500 - (280 + 62.5)

EBIT = 500 - 342.5

EBIT = 157.5

Next we have to deduct the earning after Tax

EAT = 157.5 * (1 - 0.36)

= 100.8

We have to finish the calculation by adding the depreciation. This is due to the fact that the depreciation is a non cash expense.

Hence the firms cash flow for the next year would be  100.8 + 62.5

= $163.3

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how much will the van company have to set aside each period to have $60,000 twelve years from now? assume money is at 12% compounded semiannually. (round your answer to the nearest cent.)

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Compound interest at the end of 12 years from now will $813,000 be if compounded at 12% semiannually.

What is compound interest?

Compound interest is the type of interest that is provided add the cumulative amount present in the account of the individual therefore the interest earned in the later years is greater then that was earned in the previous years.

In the case scenario provided in the question the amount is $60,000 and will be compounded at 12% semiannually that is every six months.

The calculation is Seen as below,

The formula to calculate compound interest is

P (1+i) ^ (1-n)

Where P is the principal amount

i is the interest rate

and n is the number of interest being accrued

$60,000 (1 + 0.12) ^ (1 - 24)

$813,000.

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how does the hr function meet the needs of customers under the customer-oriented perspective of human resource management? (select all that apply)

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The HR functions to meet the needs of the customer under the customer-oriented perspective of human resource management are:

By use of performance management.With qualified personnel.Through development and training.

What do we mean by the customer-oriented perspective?A business strategy known as "customer orientation" prioritizes the demands of the client over those of the company. Companies that prioritize their customers are aware that without consistently increasing their customer focus, their firm will not succeed. It's a way of thinking that connects the objectives of your company and those of your clients.You can consider long-term profits by using a customer-centric approach. Additionally, it will assist you in avoiding making decisions about your customers' needs without taking into account what they have to say.

Under the customer-oriented viewpoint of human resource management, the HR functions to address customer needs are:

By use of performance management.With qualified personnel.Through development and training.

Therefore, the HR functions to meet the needs of the customer under the customer-oriented perspective of human resource management are:

By use of performance management.With qualified personnel.Through development and training.

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areas of abandoned, vacant factories, warehouses and residential sites that may be contaminated from past use are called .

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An urban area of abandoned, vacant factories, warehouses, and residential sites that may be contaminated from past uses are called Brownfield.

Brownfield land is any previously constructed area that is not actively being used in urban planning. Although the region may be potentially contaminated, it is not necessary to refer to it as a brownfield. The phrase is also used to refer to property that has previously been used for industrial or commercial purposes and has known or suspected pollution, such as soil contaminated from hazardous waste. Examples of locations include defunct factories, landfills, dry cleaners, and petrol stations. Heavy metals like lead, tributyl tins, and asbestos are examples of common contaminants, along with hydrocarbon spills, solvents, pesticides, and hydrocarbons.

Since the cost of cleanup exceeds the land's value after redevelopment, many contaminated brownfield sites serve as involuntarily parks for decades. Unknown underground wastes may raise the expense of investigation and cleanup. acquisition, adaptation.

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Angelo works as the frozen food manager in a large grocery store. When his stock of two-pound bags of frozen shrimp gets down to two cases, he emails the warehouse to send ten cases to restock. The type of decision angelo is making about restocking shrimp is a?.

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The type of decision Angelo is making about restocking shrimp is a programmed decision.

Programmed decisions are those which might be repeated over the years and for which a present set of rules may be evolved to manually the procedure.

A brief description of different sorts of programmed and non-programmed decisions is given beneath:

Organizational and private selections: those selections reflect the use of authority.

Operational and strategic choices:

research and disaster—intuitive selections.opportunity and hassle-fixing decisions.Programmed decisions are decisions that have been made so normally within the past that managers have advanced guidelines or recommendations to be implemented whilst positive conditions unavoidably occur.

An instance of a programmed choice is whilst a workplace manager orders extra materials while the inventory drops to a certain degree.

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$3,250 is withdrawn at the end of every month from an account paying 4.1% compounded monthly. determine the previous value of the account, given that withdrawals are made from the account for 30 years. round to the nearest cent. a. $1,170,000.00 b. $2,304,150.99 c. $674,899.66 d. $672,601.61 please select the best answer from the choices provided a b c d

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The previous value of the account, given that withdrawals are made from the account for 30 years is 672,601.61$.

When compounding interest, where should I start?

If you're a newbie investor and want to start enjoying compound interest as soon as possible with the least amount of risk possible, savings instruments like CDs and savings accounts are the greatest option. Bank-issued CDs are financial products that provide regular interest payments and a low minimum deposit requirement.

Is compound interest advantageous or detrimental?

Compound interest can produce significant wealth over the long term when used in investments with a substantial initial principal and plenty of time for growth. The better it is, the more compounding periods there are (monthly or quarterly rather than annually).

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your worksheet contains a price in cell a5, and many formulas refer to that price. how would you refer to that price in the formulas?

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Your worksheet contains a price in cell a5, and many formulas refer to that price would you refer to that price in the formulas $A$5.

Functions are built-in formulas used to enter commonly used or very complex formulas. Functions, like formulas, begin with an equals sign "=" and use cell references in that format. A commonly used function is the Sum function, which adds values ​​within a range.

This function takes the following arguments: number1 (required argument) - This is the first number in the cell reference or cell range you want to average. Number2 (optional argument) - these are additional numbers, cell references, or ranges for which you want the average.

The SUM function adds values. You can add individual values, cell references or ranges, or a combination of all three. Example: =SUM(A2:A10) Adds the values ​​in cells A2:10.

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what are the critical inputs that senior management must provide to an organization utilizing a project priority management system?

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The critical inputs that senior management must provide to an organisation utilising a project priority management system are the amount of resources to commit to various categories of projects. Also, guidance is required on what to include in the selection criteria. Senior management also looks out for the development of individual project plans.

A project management substructure is a set of typical project management processes, templates and tools that can be employed to initiate, plan, accomplish, control and conclude a project.

In project management, priority refers to the urgency and significance of a task or project. Senior project managers use priority to determine who will take ownership of each task and when to expect results.

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if the nominal exchange rate between british pounds and dollars is 0.5 pound per dollar, how many dollars can you get for a british pound?

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We get 2 dollars, if the nominal exchange rate between British pounds and dollars is 0.5 pound per dollar

What is exchange rate?Foreign investment carries an inherent risk known as exchange rate risk, often known as forex risk, although it can be significantly reduced by using hedging strategies. An investor would need to completely refrain from investing in foreign assets in order to minimize FX risk. However, using currency forwards or futures, exchange rate risk can be reduced.Changes in the investor's home currency relative to the foreign investment currency are what lead to exchange rate risk.These risks can be reduced by employing a hedged exchange-traded fund or by using different investment instruments, such as currency forwards, futures, or options, by the individual investor.While exchange rate risk cannot entirely be eliminated, it can be reduced.

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jj recently became one of the firm's youngest-ever department managers. each week, during management meetings, jj proposes ways to use slack, shared files, and the firm's intranet to streamline the group's communications. which personal barrier to communication would you attribute to jj?

Answers

Variable skills in communicating effectively is the personal barrier to communication would you attribute to jj. Hence, option D is correct.

What is the importance of communication skills?

The differences in behavior and perspectives between groups of people who were born at various times are referred to as the generational gap in the workplace. Each generation may have distinct expectations for their careers due to their diverse upbringings.

For instance, baby boomers may have more liberal fiscal views than members of the silent generation, who are typically considered as being fiscally conservative. The Gen Z group is particularly tech savvy and skilled at using social networking sites, although previous generations may prefer more traditional modes of communication.

Thus, option D is correct.

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The options are missing-

a) Lack of trustworthiness

b) generalization difference

c) attentional issue

d) variable skills in communicating effectively

Customers arrive at a movie theater at the advertised movie time only to find that they have to sit through several previews and prepreview ads before the movie starts. Many complain that the time devoted to previews is too long. A preliminary sample conducted by the wall street journal showed that the standard deviation of the amount of time devoted to previews was 4 minutes. Use that as a planning value for the standard deviation in answering the following questions. Round your answer to next whole number. A. If we want to estimate the population mean time for previews at movie theaters with a margin of error of seconds, what sample size should be used? assume confidence. B. If we want to estimate the population mean time for previews at movie theaters with a margin of error of minute, what sample size should be used? assume confidence.

Answers

a) The required Sample Size is 40.

b) the required Sample Size is 62.

Step-by-step explanation:

Given the data in the question;

standard deviation σ = 4 minutes

a)

margin of error E = 75 seconds = ( 75 / 60 )minutes = 1.25 minutes

And 95% confidence.

Now, the Critical Value of z for 0.95 confidence interval;

∝ = 1 - 0.95 = 0.05

= 1.96

so, sample size n will be;

n = [  × σ/E ]²

we substitute;

n = [ 1.96 × (4/1.25) ]²

n =  [ 1.96 × 3.2 ]²

n = [ 6.272 ]²

n = 39.338

Since we referring to a number of samples, it approximately becomes 40

Therefore, the required Sample Size is 40

b)

margin of error E = 1 minutes

And 95% confidence.

Now, the Critical Value of z for 0.95 confidence interval;

∝ = 1 - 0.95 = 0.05

= 1.96

so, sample size n will be;

n = [  × σ/E ]²

we substitute;

n = [ 1.96 × (4/1) ]²

n =  [ 1.96 × 4 ]²

n = [ 7.84 ]²

n = 61.466

Since we referring to a number of samples, its approximately becomes 62.

Therefore, the required Sample Size is 62.

Sample size determination involves choosing the number of observations or repetitions to include in a statistical sample.

The sample size is an important feature of any experimental study where the goal is to draw conclusions about a population from a sample.

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on january 9, $500 was paid towards a purchase of office supplies on account for $1,000. what is the journal entry for this transaction? a.) general journal page 1 date account

Answers

Office supplies a/c.............dr             1000

  To Account payable a/c                 1000

Whether a transaction is economic or not, it must be recorded in a journal entry. Transactions are listed in an accounting journal that shows a company's debit and credit balances. The journal entry may contain several recordings, each of which is a debit or credit.

Whether physically or digitally, every business transaction must be meticulously and accurately documented in a journal entry. If this information is available, the journal entry will additionally state whose accounts a transaction affects. The four main types of journal entries are debits, credits, cash flow journal entries, journal entries for the income statement, and journal entries for the balance sheet.

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Which ncaa women’s basketball official team account tops the social media interactions rankings as of september 2022?.

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The 40th iteration of the competition started on March 16, 2022, and came to an end with the championship game on April 3, 2022, at Target Center in Minneapolis, when the South Carolina Gamecocks defeated the UConn Huskies 64-49 to claim their second NCAA championship.

The National Collegiate Athletic Association NCAA, a member-driven organization, is committed to the welfare and success of college athletes for the rest of their lives.

An official basketball league in the US is called the Women's National Basketball Association (WNBA). There are twelve teams in it. The National Basketball Association (women) equivalent was established on April 22, 1996, and league play began in 1997.

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which category on the safety data sheet (sds) indicates the ingredients of the product, as well as the concentrations used in mixtures and when chemicals have been withheld due to a trade secret?

Answers

Section 3: Composition and Ingredient Information Indicates the ingredient(s), including contaminants and stabilising additives, that are present in the product listed on the Safety Data Sheets.

A safety data sheet is what?

Manufacturers, distributors, and importers of chemicals are now required under the federal Hazard Communication Standard, which was updated in 2012, to produce new Safety Data Sheets in a uniform format that includes the section numbers, headings, and tables.

The old, pre-2012 material safety data sheets, also known as MSDSs, were superseded as part of that shift by the new, post-2012, GHS-aligned safety data sheets, also known as SDSs.

The main advantage of the new safety data sheets, or SDS, is that the safety data about the hazardous chemical would be presented in a dependable, regular, uniform, and understandable sequence.

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the store is selling cough drops for $1.49. you know that the net profit is $0.31 and the overhead is $0.20. what is the cost?

Answers

The cost price is $0.98 after removing the overhead and profit from selling price.

the store is selling = $1.49

net profit = $0.31  

overhead = $0.20

Cost price = 1.49 - 0.31 - 0.20 = 0.98

Overhead costs, frequently called overhead or running costs, confer with the ones charges related to running a business that can not be connected to growing or generating a products or services. they're the fees the commercial enterprise incurs to stay in commercial enterprise, regardless of its fulfillment level.

In commercial enterprise, overhead or overhead price refers to an ongoing cost of running a commercial enterprise. Overheads are the expenditure which cannot be comfortably traced to or diagnosed with any unique sales unit, not like operating costs which include uncooked material and labor.

Overhead refers to the continued commercial enterprise fees not at once attributed to growing a service or product. it's miles essential for budgeting purposes but also for figuring out how a whole lot a employer need to charge for its services or products to make a earnings.

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seattle company issued a $90,000 face value discount note payable to first federal bank on september 1, year 1. the note had a 4% discount rate and a one-year term. what is the amount of interest expense appearing on the year 1 income statement?

Answers

The Seattle company's interest expense on the year 1 income statement will be $1120.

What is an Income statement?An income statement is one of the three primary financial statements used to report a company's financial performance for a particular accounting period. Two other essential statements are the balance sheet and the cash flow statement.An income statement focuses on a company's revenues, expenses, profits, and losses in a particular period of time. The Income Statement, also known as the Profit and Loss Statement (P&L) or Profit and Loss Statement, provides valuable insight into a company's operations, operational efficiency, underperforming sectors, and performance relative to its peers.This shows balance sheet and cash flow statement is one of the three primary financial statements that report a company's financial performance for a particular accounting period.

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Suppose the monopolist has total fixed costs equal to $5 and a variable cost equal to $4 per unit for all units produced. What is the total profit if she operates at her profit-maximizing price?.

Answers

Suppose the monopolist has total fixed costs equal to $5 and a variable cost equal to $4 per unit for all units produced. $11 is the total profit if she operates at her profit-maximizing price.

Total revenue = Price x Quantity

Total cost = Total fixed cost + Variable cost per unit x Quantity

Marginal revenue =Current total revenue - Previous total revenue/Current quantity -Previous quantity

Marginal cost =Current total cost - Previous total cost/Current quantity Previous quantity

Maximum profit =Total revenue Total costMazimum profit = 24 - 13 =11The total profit if he operates at her profit-maximizing price is c. $11.

As Irving Fisher explained, a monopoly is a noncompetitive demand that creates a situation in which a particular person or firm is the sole supplier of a particular thing. A monopoly os an individual, group, or company that controls and controls the demand for a particular good or service. This lack of competition and lack of alternative goods and services means that monopolists wield enough power in their businesses to charge high prices.

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describe situations in which you have an integration of future lump sums and streams of equal and unequal payments

Answers

An annuity may consist of a number of similar cash flows that are charged and settled on a regular basis. The recurring occurrence of a specified amount of CF over a specified length of time is one of the fundamental components of an annuity.

What is the concept of the excerpt?

There will always be instances where a client settles their account or receives receipts for more than the whole amount owed. An annuity is not necessary in this situation.

The lump sum amount, which is the total of all unequal amounts paid or received up until that moment, will serve as the basis for determining the value at maturity.

Thus, An annuity may consist of a number of similar cash flows that are charged and settled on a regular basis.

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on july 9, mifflin company receives an $8,800, 90-day, 8% note from customer payton summers to replace an account receivable. what entry should be made by mifflin on july 9 to record receipt of the note?

Answers

The journal entry for Mifflin company on July 9 will be:

Cash A/c......Dr. $8800

Interest revenue A/c.......Cr. $176

Notes receivable A/c......Cr. $8624

A promissory note is a type of debt instrument in which one party—the note's issuer or maker—promises in writing to pay another party—the note's payee—a specific amount of money, either immediately or at a predetermined later date.

Value of the note = $8800

Interest on the note = 8%

Number of days = 90

Interest revenue from the note = Value of the note*90/360*Interest on the note

8800*90/360*8% = $176

Journal entry:

Cash A/c......Dr. $8800

Interest revenue A/c.......Cr. $176

Notes receivable A/c......Cr. $8624

(Being note received)

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if the cyclically adjusted deficit is reduced and turned into a cyclically adjusted surplus, what is the status of discretionary fiscal policy?

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Contractionary fiscal policy is the state of discretionary fiscal policy if the cyclically adjusted deficit decreases and becomes a cyclically adjusted surplus.

What is a Contractionary fiscal policy?When the government either reduces expenditures or hikes taxes, it is implementing a contractionary fiscal policy. Its term refers to the way the economy is contracted. It lowers the amount of money that can be spent by businesses and individuals.The government's decision to cut spending could be a contractionary fiscal policy example. Meaning that less money will be allocated to government programs like the military, healthcare, and the forest service.Contractionary fiscal policy is the state of discretionary fiscal policy if the cyclically adjusted deficit decreases and becomes a cyclically adjusted surplus.

Therefore, contractionary fiscal policy is the state of discretionary fiscal policy if the cyclically adjusted deficit decreases and becomes a cyclically adjusted surplus.

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the contractual duty of a professional contains an implied promise c) to work for the client. a) to perform the services with due care. b) to accept payment rendered for services. e) to submit invoices denominated in canadian dollars only. d) to engage other agents in pursuance of the contract.

Answers

The contractual duty of a professional contains an implied promise d) to engage other agents in pursuance of the contract.

A professional is a member of a profession or any person who works in a special professional pastime. The time period also describes the requirements of schooling and education that prepare members of the career with the precise knowledge and abilties essential to carry out their precise position inside that profession.

Professionalism involves being reliable, placing your very own high standards, and displaying that you care about approximately every element of your activity. it is approximately being industrious and organized, and holding your self accountable for your thoughts, words and movements.

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statistical sampling generally may be applied to test internal control when the client's internal control procedures:

Answers

Internal control can be tested using statistical sampling when the client's internal control procedures: Create an audit trail by storing proof of compliance.

The sample should be chosen by the internal auditor in a way that ensures it is representative of the overall population. For this to be possible, every item or sampling unit in the population must be given the chance to be chosen.

sampling for a statistical audit. With statistical audit sampling, the auditor chooses the items to be verified using statistical techniques like random sampling. When there are numerous items or transactions on file, random sampling is used. Business documents are examined for any indications of review as part of control tests. Internal controls have been used if there are signatures, checkmarks, and stamps.

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an analyst determines that a company has a return on equity of 16% and pays 40% of its earnings in dividends. if the firm recently paid a $1.50 dividend and the stock is selling for $40, what is the required rate of return on the stock if it is priced according to the dividend discount model?

Answers

The required rate of return on the stock if it is priced according to the dividend discount model is 13.7%.

g = (1 − payout)(Return of Exchange)

= (1 − 0.40)(16%)

= 9.6%

k= [tex]\frac{(1.5)(1.096)}{40} + .096[/tex]

= 13.7%

By assuming that the stock is worth the sum of all of the company's future dividend payments, discounted back to its present value, the dividend discount model is a method used in finance and investment to value the price of a company's stock. The dividend discount model (DDM), a mathematical technique for predicting the price of a company's stock, is based on the notion that all of the company's future dividend payments are worth the current value of the shares when discounted back to their present value. One way for figuring out a stock's intrinsic value is DDM.

Note that the full question is:

An analyst determines that a company has a return on equity of 16% and pays 40% of its earnings in dividends. If the firm recently paid a $1.50 dividend and the stock is selling for $40, what is the required rate of return on the stock if it is priced according to the dividend discount model?

A) 9.6%.

B) 10.2%.

C) 13.7%.

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is the sum of money spent so far. target cost estimated cost standard cost actual cost predetermined cost

Answers

Option (D.) is the correct answer thus we can say that Actual Cost is the sum of money spent so far.

As the word explains, actual cost means any expenditure on the product, starting from manufacturing, delivery, set-up, assets, etc. It is very different from other costs here we have to calculate whatever we have spent on any asset till now whereas other costs like target cost and estimated cost estimate whatever expenditure we are going to do in the future. Here the predetermined cost is again another type of estimated cost. Thus here we can say that  "The sum of money spent so far is the Actual Cost."

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