The statement is false that after world war ii, the advanced industrial nations of the west committed themselves to increasing barriers to the free flow of goods, services, and capital between nations
What is Barriers To Trade?A tariff, or import tax, is the most prevalent type of trade barrier. Imported items cost more than domestically manufactured goods due to tariffs (good produced at home). A government support to one domestic business over another is a typical trade barrier. Producing those things is now more affordable than selling them abroad thanks to subsidies. Government-imposed limitations on global trade are known as trade barriers. Trade restrictions are bad for the global economy and reduce overall economic efficiency, claims the comparative advantage argument.Trade hurdles include a variety of challenges exporting nations experience while sending commodities abroad. Depending on the time and distance between the countries, these trade obstacles can occasionally be purely natural. Trade barriers can occasionally be the result of government action. Tariffs and quotas are two of these restrictions.Following World War II, the developed industrialized nations of the West made a commitment to erect more obstacles to the free flow of people, capital, and services across borders. The aforementioned claim is untrue.The industrialized West strove to open up its economies following World War II. As a result, they switched from a closed to an open economy. Due to a decrease in trade restrictions, products and services could flow freely. Nations were allowed to trade freely to benefit from trade when all cultural and political barriers were removed.
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on november 1, year 2, davis co. discounted, with recourse, a $20,000, 10%, one-year, interest-bearing note receivable. the note is scheduled to mature on january 31, year 3, and the bank's discount rate is 12%. what amount, if any, must davis disclose as a contingent liability for the year ended december 31, year 2?
$20,500; the company is subject to the maturity amount. The bank with which Davis discounted the note would be required to pay the full maturity amount if the note maker fails to do so.
A bank is a type of financial entity that lends money while both taking deposits from the general public and generating demand deposits. The bank may engage in lending activities directly or indirectly through the capital markets. bank, a business that deals with money and its alternatives as well as other financial services. A bank lends money and accepts deposits as part of its function as a financial middleman. Since Italian merchants in the Renaissance formed agreements to borrow and lend money next to a bench, the term bank is derived from the Italian word banco, which means bench. They set the cash down on the bench. Simple financial records have existed since the dawn of time.
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why does airline management keep their financial date secret and only release the minimum required by company law or stock exchange rules? what events of the past 20 years have affected thi
Privately held businesses are typically exempt from legal requirements requiring them to disclose certain financial and operational data.
They have a lot of freedom in determining what kinds of information to make public. Small firms and other privately held businesses may choose to keep certain sorts of information private and decide for themselves who needs to know about them. On the other hand, businesses that are owned by the general public are governed by extensive disclosure regulations regarding their financial situation, operating outcomes, management remuneration, and other aspects of their operations.
Many smaller businesses decide to offer investors shares in their business in order to obtain finance. In these situations, small businesses are governed by many of the same disclosure regulations as large enterprises.
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A perpetuity costs $77. 1 and makes annual payments at the end of the year. The and Sn at the end of year perpetuity pays $1 at the end of year 2, $2 at the end of year 3, etc (n+ 1). After year (n+1) payments remain constant at level $n. The annual effective rate is 10. 5%. Compute rn
If the and Sn at the end of year perpetuity pays $1 at the end of year 2, $2 at the end of year 3, etc (n+ 1), then n = 19.
What is perpetuity?An endless stream of cash payments or an annuity with no end is known as a perpetuity. In reality, there aren't many perpetuities. For instance, the Consols that the British government had previously issued and that were all finally redeemed in 2015 were issued.
Regular increasing perpetuity pays (n+1) at time (n+2) meanwhile this perpetuity pays n, resulting in a difference of 1 between two payments, at time (n+3) regular perpetuity pays (n+2) while this one pays (n+1)
Therefore, this perpetuity is the difference between regular increasing perpetuity with first payment at time 2 and identical increasing perpetuity with first payment at time (n+2)
77.1 = v2 * 1/d2 - vn+2 * 1/d2
= v2/d2 * (1-vn)
= i2 * v2 / d2 * (1 - vn / i * 1/i)
= a-n|
77.1 = a-n| = a-n|
= 0.105
8.0955 = a-n|10.5%
n = 19.002
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A small startup firm has each of the partners contribute $50,000 in capital to help the company make payroll for the next three months. W2 Corp. Needs capital to finance a new product line. It borrows money in the form of long-term bonds underwritten by an investment bank. Citibank issues a loan to Jennifer for the expansion of her flower delivery business. Steve’s grandfather loans him $30,000 to start a small coffee shop in the East Village in Manhattan
None of the options provided are examples of money market instruments.
Money market instruments are typically short-term investments, such as Treasury bills, commercial paper, and certificates of deposit, that are used to raise funds for businesses and governments. They are generally considered to be low-risk and low-return investments, and are often used as a way to park cash or as a source of short-term funding.
The options provided are examples of different focirms of financing: The small startup firm has each of the partners contributing capital to help the company make payroll for the next three months. This is an illustration of equity financing.
W2 Corp. borrows money by issuing long-term bonds that are underwritten by an investment bank. This is an illustration of debt financing.
Jennifer receives a loan from Citibank to help her grow her flower delivery business. This is an illustration of debt financing.
Steve's grandfather lends him $30,000 to open a small coffee shop in Manhattan's East Village. This is an illustration of debt financing.
Steve's grandfather loans him $30,000 to start a small coffee shop in the East Village in Manhattan. This is an example of debt financing.
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The complete question is :
Each partner in a small startup firm contributes $50,000 in capital to help the company make payroll for the next three months.
W2 Corp. requires capital to fund a new product line. It borrows money through long-term bonds issued by an investment bank. Jennifer receives a loan from Citibank to help her grow her flower delivery business.
Steve's grandfather lends him $30,000 to open a small coffee shop in Manhattan's East Village.
Which of the ones that follow is an example of a market instrument??
there is a gap between how well the us stock market does, and how the average investor does. what 2 factors explain that gap?
1. Lack of education on investing & market knowledge.
2. Poor decision making based on emotions instead of research.
What 2 factors between US stock market and the average investor’s ?Fees and emotions are the two main factors that account for the discrepancy between the performance of the US stock market and that of the typical investor.
Fees include things like broker commissions and other administrative expenses that come along with buying and selling investments. Over time, even small fees can have a big impact on returns.
Emotions may also play a role. Investors may act irrationally in volatile markets, such as buying high and selling low, which can lower returns.
Investors might also become overconfident and take on more risk than they can handle, or they might become overly fearful and miss out on investment opportunities. Investors can increase their chances of success in the stock market by accounting for fees and emotions.
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in recent decades many large corporations have reorganized their matrix structures such that financial and strategic control is exercised through a single dimension. [see p.159] group of answer choices true false
True, In recent decades many large corporations have reorganized their matrix structures such that financial and strategic control is exercised through a single dimension.
What is matrix structures?A matrix structure combines two or more different organisational structure types. It is a method of setting up your company so that reporting relationships are established as a grid or matrix rather than in the conventional hierarchy.
Employees in this structure typically report to both the project manager and their functional manager. Usually, one reporting line will be given precedence over the other (eg staff may have to report to their functional manager before reporting to the project manager).
A matrix organisational structure deviates from the conventional, hierarchical model. In the matrix structure, resources and personnel are shared between teams, projects, and departments or functions.
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a market in which households sell land, labor, and capital to firms
The Market for Resources. In the demand curve concept, households are the users of said production factors in the financial economy (factor market).
Why is it vital to define the market?An essential initial step in evaluating mergers and the majority of antitrust lawsuits is market definition. It serves to outline the parameters of corporate rivalry.
What exactly is a market, for instance?A market is any place where sellers include producers, retailers, and distributors and buyers include consumers. Examples include storefronts, important thoroughfares, and websites. The term are also used to refer to any consumer who makes a purchase of a good or service.
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greenwood industries reports the following amounts at the end of the year: cash $ 47,500 service revenue $ 96,500 building 43,000 salaries expense 54,000 accounts payable 7,100 equipment 64,400 interest expense 2,900 accounts receivable 4,600 advertising expense 8,900 notes payable 22,600 in addition, the company had common stock of $71,000 at the beginning of the year and issued an additional $6,200 of common stock during the year. the company also had retained earnings of $23,500 at the beginning of the year and paid dividends of $1,600 during the year. required: 1. calculate net income. 2. prepare the statement of stockholders' equity. 3. prepare the balance sheet.
1. Net Income is $31,200
2. Statement of Stockholders' Equity Total Stockholders' Equity $129,800
3. Balance Sheet
Assets
Cash $47,500
Accounts Receivable $4,600
Equipment $64,400
Building $43,000
Total Assets $159,500
Liabilities and Stockholders' Equity
Accounts Payable $7,100
Notes Payable $22,600
Total Liabilities $29,700
Stockholders' Equity
Common Stock $77,200
Retained Earnings $52,600
What is mean by Balance Sheet?
A balance sheet is a financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. It is used to gain insight into the financial strength of a company.
Assets are divided into two categories: current assets and non-current assets.
Current assets include cash and cash equivalents, accounts receivable, inventories, and prepaid expenses. Non-current assets include long-term investments, property, plant, and equipment.
Liabilities are divided into two categories: current liabilities and non-current liabilities.
Current liabilities include accounts payable, short-term debt, accrued liabilities, and taxes payable.
Non-current liabilities include long-term debt, deferred taxes, and pension liabilities.
Shareholders' equity is the difference between assets and liabilities and represents the owners' residual claim on the assets of the company.
It is calculated as the sum of contributed capital, retained earnings, and other comprehensive income.
The balance sheet provides a snapshot of the financial health of a company and is one of the most important financial documents for investors and creditors.
1. Calculation of net income:
Service Revenue - Salaries Expense - Advertising Expense - Interest Expense = $96,500 - $54,000 - $8,900 - $2,900 = $31,200
2. The statement of stockholders' equity:
Common Stock (Beginning) $71,000
Plus: Additional Common Stock $6,200
Total Common Stock $77,200
Retained Earnings (Beginning) $23,500
Plus: Net Income $30,700
Less: Dividends $1,600
Total Retained Earnings $52,600
Total Stockholders' Equity $129,800
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a corporation issued 1000 shares of $100 preferred stock for $90. what was the amount of the discount? question 2 options: $90,000 $1000 $9000 $10,000
$1000 was the amount of the discount. The difference between the purchase price and the item's par value is the discount. Discounts are different types of price reductions or deductions from a product's cost.
A discount is a reduction in the regular selling price of a good or service, either in terms of money or as a percentage. A product may, for instance, be discounted by $10 from its list price or by 10% from its list price. In a discounted cash flow (DCF) analysis, the discount rate is the interest rate that is used to calculate the present value of future cash flows. This aids in figuring out whether a project's or investment's potential future cost flows will be worth more than the capital investment required to fund them.
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a cost driver is . multiple choice question. a factor that causes overhead costs to occur a measure that is used to assign overhead costs to products and services the amount of overhead assigned to a job something you want to know the cost of
Allocates overhead to activity cost pools, and then, using cost drivers, assigns the activity cost pools to goods and services.
Since these are the activities that really create costs, the System of Costs Based on ABC Activities (Activity Based Costing) is a model that enables the distribution and allocation of various indirect costs in accordance with the activities undertaken. This technique was developed to address the issue that standard costs typically create when they inaccurately reflect the value added chain in the creation of a specific good or service, which prevents an accurate estimation of pricing.
The ABC cost model divides and allots indirect costs in accordance with the operations performed during the production of the good or service, tracing the source of the cost to the operation required for not only production but also distribution and sale. The activity is understood as the sequence of operations intended to add value to the good or service during the manufacturing process. In addition to the definition of an activity, it should be noted that the ABC Model is predicated on the idea that activities are what products and services consume, and that activities are what ultimately lead to costs.
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True or false? The area of accounting that focuses on reporting information to internal users is called managerial accounting.
True. In managerial accounting, financial data is presented for internal use so that management can use it to make important business decisions.
With an example, define managerial accounting?Capital budgeting is a tool used by managerial accountants to estimate potential outflows and inflows of cash associated with various business decisions. For instance, a manufacturer would need to first estimate the project's total cost and expected return on investment before beginning construction on a new production facility.
What does managerial accounting primarily address?In managerial accounting, financial data is presented for internal use so that management can use it to make important business decisions. In contrast to financial accounting, managerial accounting techniques are not constrained by accounting standards.
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describe the grid technique. what is is purpose and how does it lead to the making of a decision? what are its strengths and weaknesses?
Grid technique: advantages and disadvantages This method looks for a stationary facility, such a plant or distribution hub.
a quantitative method for identifying a plant or warehouse using suppliers, markers, and the least-cost centre given the raw materials a location to keep items.
A supply chain's network and structure are outlined in a working model called a supply chain design in order to calculate the time and expenses associated with getting products to market.
The grid technique is a written strategy for teaching multiplication to kids. Prior to multiplication, it entails dividing integers into tens and units. Because pupils are taught to divide numbers into a grid of boxes, the grid technique of multiplication is also known as the box method in some classrooms.
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juul claimed that their product helped people __________, even though there was no independent research to back that up.
JUUL claimed their product helped people quit smoking, but there was no independent research to support this.
What is the best manner to stop smoking?
“The best way to quit smoking is with a combination of medication and counseling," said Maher Karam Hage, M.D., medical director of MD Anderson's Tobacco Treatment Program. "Both are helpful. But using both doubles her chances of using one or the other."
What happens to your body when you quit smoking?
About three days after quitting, most people experience irritability, irritability, severe headaches, and cravings while their bodies readjust. In just one month, a person's lung function begins to improve. As the lungs heal and vital capacity improves, ex-smokers may notice less coughing and shortness of breath.
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lease 1 does not contain a bargain purchase option, but the lease term is equal to 70 percent of the estimated economic life of the leased property. lease 2 does not transfer ownership of the property to the lessee by the end of the lease term, but the lease term is equal to 90 percent of the estimated economic life of the leased property. how should the lessee classify these leases? lease 1lease 2 1-operating leasefinance lease 2-operating leaseoperating lease 3-finance leasefinance lease 4-finance leaseoperating lease
Lease 1 should be classified as an operating lease, and lease 2 should be classified as a capital lease.
How should the lessee classify these leases?
Lease 1:
1. Check if the lease contains a bargain purchase option: No
2. Check if the lease transfers ownership of the property to the lessee by the end of the lease term: No
3. Check if the lease term is equal to 90 percent or more of the estimated economic life of the leased property: No
4. Classification: Operating lease
Lease 2:
1. Check if the lease contains a bargain purchase option: No
2. Check if the lease transfers ownership of the property to the lessee by the end of the lease term: No
3. Check if the lease term is equal to 90 percent or more of the estimated economic life of the leased property: Yes
4. Classification: Capital lease
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a stock index pays dividends continuously at a rate proportional to its price. the rate is 3% during the next 6 months. afterwards the rate is 1%. andy invests in the index at time 0 and reinvests all dividends by purchasing extra units of the index. after one year, he owns 200 units of the index. if the index price is 30 at time 0, what is the initial cost for andy's position?
The stock's price is constantly negatively correlated with the frequency of dividend payouts. 8. This method is used to calculate the stock's dividend yield.
Describe stock in your own words.
Any corporation's ownership certificates are known collectively as stocks. On the other hand, a share alludes to a particular corporation's stock certificate. An individual is said to be a shareholder if they possess shares in a specific corporation. Both common and preferred stocks fall under this category.
A stock is a particular type of financial instrument that symbolizes the holder's ownership stake in the issuing company and is frequently traded on stock exchanges.
Even when there is little risk of a company collapsing, stock values can change. Huge company stocks, for instance,
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suppose that the quantity supplied of pizza exceeds the quantity demanded for pizza. we would expect that:
We would expect that the price of pizza will decrease to meet the demand. Thus, option B is correct.
The supply and demand theory of economics in microeconomics explains how prices are established in a market. In a competitive market, it is hypothesised that, all other things being equal, the unit price for a particular good or other traded good, such as labour or liquid financial assets, will fluctuate until it settles at a point in which the demand curve (at the current price) will equal the consumer surplus (at the current price), causing an economic equilibrium for price and quantity transacted. The cornerstone of modern economics is the supply and demand theory.
Macroeconomics has also used the aggregate demand-aggregate supply model to show how the equilibrium total output and aggregate price level may be determined.
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Complete question:
Suppose that the quantity supplied of pizza exceeds the quantity demanded for pizza. We would expect that:
the price of pizza will increase.
the price of pizza will decrease.
the supply will decrease to meet the demand.
the demand will increase to meet the supply.
a man borrowed r 3750 at the imple intret 7.5% p.a what will be the um he ha to depoit at the end of 73 day
We will receive Rs. 3806.25 after calculating the sum's simple interest. 3806.25. This implies that a man must deposit Rs. 3806.25 in his account at the end of 73 days.
What is Simple Interest?Simple interest is determined by multiplying a percentage of the principal (original amount) by the investment's duration. The simple interest can then be added to the principal amount to determine the investment's final value.
In its simplest form, interest is expressed as a percentage of the principal. For instance, if you agreed to repay a friend's $100 loan with 5% interest, the interest you would pay would only be 5% of 100: $100(0.05) = $5.
The formula of Simple Interest:
A = P(1+RT/100)
A = 3750(1+7.5×0.2/100)
T = 73/365 = 0.2years
= 3806.25
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true or false: imc calls for centralized messaging so that everything a company says and does communicates a common theme and positioning.
Given statement is true. The integrated marketing communications approach calls for a centralized messaging function so that everything a company says and does communicates a common theme and positioning.
IMC is defined as "a planning process designed to ensure that all label contacts that a client or possibility for a product, service, or organisation are relevant to the that person and remain consistent over time" by the American Marketing Association. "Public Relations (PR) was once the individuals who wrote news releases and dispersed them, or who pitched to the media," says Leigh Dow, communication executive at 48 West Collective in Phoenix. "Nowadays, public relations teams are typically the best at having thought around corners on message strategy and analysing how a message will be interpreted. This analysis pervades the content strategy. Furthermore, the more material is used in a variety of ways, such as media platforms, blog posts, and made contributions content, the much more PR and Creative execution strategy are intertwined."
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the need for hope springs to have tablet computers that are fast, include 24/7 tech support, and include a generous volume discount relate to which key characteristic of organizational buying?
Hope Springs requires tablets that are quick, come with round-the-clock technical support, and have a substantial bulk discount.
Why are Gantt and PERT charts so crucial to an organization?Project managers can monitor tasks and project status using PERT and Gantt charts. Gantt charts exhibit tasks and timeframes in a bar graph, whereas PERT charts show tasks and dependencies in a network diagram. Both fit into the PMBOK's task breakdown structure (WBS).
Which technique is unethical for gathering competitive intelligence?In order to get knowledge about your organization's industry and competitors, competitive intelligence relies on access to publically available information and unbiased research. A prohibited and immoral method of gaining access to confidential information is corporate espionage.
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marginal revenue is not equal to price for a monopolist because: group of answer choices the monopolist's demand curve is below its marginal revenue curve. the monopolist must lower the price of all units in order to sell more. the monopolist sets price equal to marginal cost. total revenue increases as output increases.
the monopolist must lower the price of all units in order to sell more, Because a monopolist must reduce the price of all units to increase sales, marginal revenue and price are not equivalent for a monopolist.
Because there is only one seller under a monopoly, the market is actually the monopolist. Because of this, the monopolist's demand curve slopes downward, meaning that as the price rises, less is demanded. The marginal revenue curve similarly slopes downward, but it is lower than the demand curve because the monopolist must reduce prices across the board as it sells more products to increase sales. This indicates that for a monopolist, the marginal revenue is lower than the price. The marginal revenue is equal to zero when the reserve price and posted price are both optimum.
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you overhear two co-workers discussing something personal that they had saw on a customer's device. what would you do?
You overhear two co-workers discussing something personal that they had saw on a customer's device. I would do that to explain them they do the wrong according to the privacy policy of the company on customer devices.
The privacy policy is the term which is defined as the legal statement or document in which the disclosures between the one party to other party, uses, and to manager the data of the customers or clients.
The two co-workers discussing something personal that they had saw on a customer's device, they do the wrong or illegal and they have to acknowledge the mistake. The organization should take a strict action. So, that in future the workers should know their restrictions and company's policy.
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programs determining how individuals enter, advance within, and leave an organization are examples of
Personnel management programs are examples of programs that determine how individuals enter, advance within, and leave an organization. These programs are used to select, hire, train, develop, motivate, and retain employees.
They also include policies and procedures that are designed to ensure that the organization is compliant with applicable laws and regulations. By creating and implementing these personnel management programs, organizations can ensure that they have the right people in the right roles and that they are able to build and maintain a positive organizational culture. Ultimately, personnel management programs ensure that employees are able to enter, advance within, and leave an organization in a fair and equitable way.
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Investor presentations of ________ provide an opportunity for discussions to take place regarding the continuing corporate performance on ________ value creation story and a ________ value creation plan.a) short-term plans; short term; short termb) short-term plans; long term; long termc) long-term plans; short term; long termd) long-term plans; long term; long term
Investor presentations of "long-term plans" provide an opportunity for discussions to take place regarding the continuing corporate performance on "long-term" value creation story and a "long-term" value creation plan. The correct option is D.
The long-term plans is the planning in which the target goals which is taken as a longer period of time to reach and need more processes steps.
That's why, most of the investor presentations of long-term plans which is to provide an opportunity for discussions to take place for the continuing corporate performance on long-term value creation story and a long-term value creation plan.
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carefully specified objectives should have all of the following characteristics except _______.
With the exception of having ambiguous end dates, correctly chosen objectives should contain all of the following criteria.
What makes something unspecific?The Latin verb specificare, which meaning "to mention especially," is where the word specify, the basis of unspecified, originates. Unspecified refers to something that is not specifically mentioned. The prefix un denotes "not," therefore. Get your favorite fruit if you're going to the supermarket to buy an unnamed fruit.
What are some instances of travel that is not specified?Imagine being pulled aside for a security check at the airport, then being led into a back room, hooded, and driven away. without any knowledge of your destination. You'll then be placed in a cramped cell where you can hear the cries coming from the other captives.
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All of the following would be considered a direct material for an automobile exceptA.TiresB.BatteriesC.fabric for seatsD.sand paper
Option D sand paper is correct that would not be regarded as a direct material . The direct materials used in the manufacture of a smartphone are integrated circuits, camera modules, and buttons.
What is Direct material?Direct materials are raw materials that are directly used in the manufacturing process of a company's goods and services and are an essential component of the finished goods manufactured. Direct Material Costs are reported on the debit side of the trading account under the heading "cost of goods sold." They are also known as the costs incurred to create a product that can be traced back to its original form.
It can take physical or artificial forms, such as technology. For example, in a company like Amazon, the main cost of the company is to build a system that allows it to reach the greatest number of people worldwide. Since, in this case, the technology cost will be considered as the direct materials cost, The company will be unable to sell products on the platform unless it establishes a proper technical infrastructure. Cost accounting, on the other hand, is more thoroughly studied because it has a direct impact on the final product costing.
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Which of the following best defines goal?
a. aim or purpose
b. disregard or disrespect
c. freedom from doubt
d. influence
what is the present value of a growing perpetuity that has an initial payment of $20,000 one year from now. assume a growth rate of 5% and a rate of return equal to 9%.
This growing perceptuality has a present value of $420,370. Investors will always receive a predetermined amount of cash flow from Perpetuity.
If the discount rate changes, the perpetuity present value changes. The present value will decrease in tandem with an increase in the discount rate.
In Excel, how do you calculate PV of perpetuity?A perpetuity series that is considered to be indefinite and is growing at a proportionate rate in terms of periodic payments. As a result, the formula can be summed up like this: PV is D/ (1+r) + D/ (1+g) + D/ (1+r) 2... It is believed that the perpetuity series will continue for an infinite amount of time.
With an example, what is perceptuality?A growing perpetuity involves cash flows that are not fixed, whereas a perpetuity provides you with fixed cash flows for an infinite period. For instance, a growing perpetuity is an investment in a perpetual fund whose annual payments increase at the same rate.
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bill jones tree trimming bills his clients for his services. bill's customers are allowed 30 days to pay. amounts owed by these clients are known as
Bill jones tree trimming bills his clients for his services. bill's customers are allowed 30 days to pay. amounts owed by these clients are known as accounts receivable.
Customers' outstanding debts for goods or services they have received but haven't yet paid for are referred to as accounts receivable. For instance, the amount owing when clients buy things on credit is added to the accounts receivable. It is a debt incurred as a result of a commercial transaction.
Hence the correct answer is accounts receivable.
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imagine you want to buy a newly released pair of nike shoes and you go online to purchase them. because the product you want is the same for every website, the only thing that will affect where you decide to purchase your shoes is the price. what type of economic situation exists in this example?
Type of economic situation exists in this example is Pure Competition
Pure competition is a term that portrays a market that has a wide scope of contenders who are selling similar items. It is frequently alluded to as wonderful rivalry. Here are a few qualities that characterize unadulterated contest:
In an ideal absolutely aggressive market, the items being sold would be indistinguishable, which eliminates the choice of one dealer offering something else or better than another vender.
Since there are such countless rivals in the market offering a similar item at a similar cost, one contender doesn't have an edge over the others. Basically, every one of the merchants are equivalent.
New organizations can undoubtedly enter the market.
The cost of items is resolved exclusively by the thing customers will pay.
To additionally show unadulterated contest, how about we envision that you are buying arranged variety plastic inflatables. You hit up your neighborhood party store where you find a few unique brands of inflatables accessible. There are five distinct brands of 10-inch arranged variety inflatables, and they are completely valued at 99 pennies for each bundle.
Since there is definitely not a massive distinction in plastic inflatables, and they are generally a similar size and value, you are not worried about which bundle you purchase. They all are basically something similar. In this model, the inflatable makers are working under unadulterated rivalry since one organization doesn't have an edge over another. Conventional items, similar to inflatables, can outline unadulterated contest. Every one of the costs are equivalent, and eventually, the inflatables are something similar.
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rocky mountain bottling company produces a soft drink that is sold for a dollar. at production and sales of 1,000,000 units, the company pays $700,000 in production costs, half of which are fixed costs. at that volume, general, selling, and administrative costs amount to $300,000, of which $50,000 are fixed costs. what is the amount of contribution margin per unit?
The difference between the selling price per unit and the variable cost per unit is the contribution margin per unit. In the breakeven analysis, which is also known as the cost-volume-profit analysis.
This is used to calculate the breakeven point.
How is commitment edge determined?
Commitment edge is determined as Income - Variable Expenses. The commitment edge proportion is determined as (Income - Variable Expenses)/Income
What is commitment edge versus gross edge?
Commitment edge considers just the variable expenses of making an item or administration, while gross edge thinks about all immediate expenses of creation.
First, figure out all of the variable costs.
($800,000 x 0.50) plus (250,000 - 70,000) equals $580,000 in variable costs.
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