Question 1 of 10

Product deletion can best be described as the process of deleting a product from the product mix when it a. no longer responds t

Mamont248 [21]

Answer:

(c). no longer satisfies a sufficient number of customers

Explanation:

Product deletion refers to removal or discontinuance of a product from the product line when such a product has been consistently incurring losses since a number of years and it's further continuation would adversely affect the other products and profitability.

A product is usually deleted from the product line on the grounds of it's failure in satisfying a sufficient number of customers.

Hence, the correct option is (c). no longer satisfies a sufficient number of customers.

5 0

4 years ago

Under the equity method of accounting for investments, an investor recognizes its share of the earnings in the period in which t

Sphinxa [80]

Answer: Earnings are reported by the investee in its financial statements

Explanation:

Equity method is when investments are being treated in associate companies and it is usually applied in cases whereby an investor entity holds about twenty to fifty percent of the associate company's voting stock. Due to this reason, it has a strong say in the associate company's management.

Under the equity method of accounting for investments, an investor recognizes its share of the earning in the period in which the earnings are reported by the investee in its financial statements.

8 0

3 years ago

Over a certain period, large-company stocks had an average return of 12.59 percent, the average risk-free rate was 2.58 percent,

suter [353]

Answer:

The answer is 14.87%

Explanation:

Solution

Given that:

A large company stock had an average return of =12.59%

The average risk free rate = 2.58%

A small company stocks average is =17.45

The next step is to find the risk premium on small-company stocks for this period

Thus,

The risk premium on small-company stocks = Average return on small-company stocks - average risk-free rate

So,

Risk premium on small-company stocks = .1745 - 0.258

=0.1487

Therefore the risk premium on small company stocks for the period was 14.87%

6 0

3 years ago

Robyn's Retail had 500 units of inventory on hand at the end of the year. These were recorded at a cost of $19 each using the la

podryga [215]

Answer:

Credit inventory 1000 and debit COGS 1000

Explanation:

19*500=9500 <price it is recorded at currently

The rule requires lower cost - market vs. price. Since market cost is lower, you have to find out how much the ending inventory balance should be

17*500=8500

9500-8500=1000

The inventory booked should be lowered, thus requiring credit entry of 1000. Since it is a merchandise loss, it is counted towards cost of goods sold expense, thus debit

8 0

3 years ago

During the first two years, Supplies, Inc. drove the truck 15,000 and 22,000 miles, respectively, to deliver merchandise to its

Oksi-84 [34.3K]

Answer:

Depreciation Expense for the 2nd Year= $11,000`

Explanation:

Depreciation Expense = (Cost- Salvage Value)* Actual Activity Performed

During the 2nd year

Total Estimated Lifetime Activity Of the Asset

Depreciation Expense= ($ 175,000- $ 25,000) * 22,000/ 300,000

Depreciation Expense= ($ 150,000) * 22,000/ 300,000

Depreciation Expense= ( 3300,000,000/ 300,000

Depreciation Expense= $11,000

Depreciation Expense = (Cost- Salvage Value)* Actual Activity Performed

During the 1st year

Total Estimated Lifetime Activity Of the Asset

Depreciation Expense= ($ 175,000- $ 25,000) * 15,000/ 300,000

Depreciation Expense= ($ 150,000) * 15,000/ 300,000

Depreciation Expense= ( 2250,000,000/ 300,000

Depreciation Expense= $7500

7 0

3 years ago