Question 14 Which one of the following is NOT an advantage or disadvantage of sh

Question

Question 14 Which one of the following is NOT an advantage or disadvantage of shifting to robot-assisted assembly methods for UAV drones? O Installing robots at each drone workstation enables the size of drone PATs to be cut by one member. If borrowing is used to partly or wholly finance the capital outlays associated with converting to robot-assisted assembly, then the company's annual interest costs will rise until the borrowed funds are repaid. O Robotics-assisted assembly increases annual maintenance costs per drone workstation. O If borrowing is used to partly or wholly finance the capital outlays associated with converting to robot-assisted assembly, then the company's annual depreciation expenses will be lower until the borrowed funds are repaid. O The capital cost of converting to robot-assisted drone assembly results in higher annual depreciation costs in producing/assembling drones. Copying, redistributing, or website posting is expressly prohibited and constitutes copyright violation. Copyright 2018 by Glo-Bus Software, Inc. C

Explanation / Answer

If borrowing is used to partly or wholly finance the capital outlays associated with converting to robot-assisted assembly, then the company's annual depreciation expenses will be lower unitl the borrowed funds are repaid.

The above statement is not true, because the depreciation expenses will remain same irrespective of whether the capital outlays are financed or not and irrespective of the extent to which the capital outlays are financed. The only difference between financing and non-financing is that in case of finance, there will be an additional interest expenses, unitl the borrowed funds are repaid.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.