Ppx is a specialized packaging company that packages other manufacturers' products. other manufacturers ship their products to ppx in bulk. ppx then packages the products using high-speed, state-of-the-art packaging machines and ships the packaged products to wholesalers. a typical order involves packaging small toys in see-through plastic and cardboard containers. ppx uses a flexible budget to forecast annual plantwide overhead, which is then allocated to jobs based on machine hours. the annual flexible overhead budget is projected to be $6 million of fixed costs and $120 per machine hour. the budgeted number of machine hours for the year is 20,000. at the end of the year, 21,000 machine hours were used and actual overhead incurred was $9.14 million.

The cost of capital: introduction the cost of capital: introduction companies issue bonds, preferred stock, and common equity to aise capital to invest in capital budgeting projects. capital is』necessary factor of production and like any other factor, it has a cost. this cost is equal to the select the applicable security. the rates of return that investors require on bonds, preferred stocks, and common equity represent the costs of those securities to the firm. companies estimate the required returns on their securities, calculate a weighted average of the costs of their different types of capital, and use this average cost for capital budgeting purposes. required return on rate: when calculating om operations when the firm's primary financial objective is to select shareholder value. to do this, companies invest in projects that earnselect their cost of capital. so, the cost of capital is often referred to as the -select -select and accruals, which a se spontaneously we hted average cost of capital wa c our concern is with capital that must be provided by select- 쑤 interest-bearing debt preferred stock and common equity. capital budgeting projects are undertaken, are not included as part of total invested capital because they do not come directly from investors. which of the following would be included in the caculation of total invested capital? choose the response that is most correct a. notes payable b. taxes payable c retained earnings d. responses a and c would be included in the calculation of total invested capital. e. none of the above would be included in the cakulation of total invested capital.