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2 years ago

How does the use of credit influence businesses and the economy?

Business

1 answer:

Arada [10]2 years ago

8 0

Answer:

When consumers and businesses can borrow money, economic transactions can take place efficiently and the economy can grow. Credit allows companies access to tools they need to produce the items we buy. A business that couldn’t borrow might be unable to buy the machines and raw goods or pay the employees it needs to make products and profit.

Explanation:

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_____ change occurs occasionally, with periods of relative stability, and managers can respond with technical, product, or struc

BabaBlast [244]

<em>Episodic change</em><em> change occurs occasionally, with periods of relative stability, and managers can respond with technical, product, or structural innovations as needed.</em>

<h3>Episodic change</h3>

Organizational changes that tend to be uncommon, discontinuous, and planned are referred to as "episodic change" in this context. The assumption is that episodic change happens when organizations diverge from their equilibrium circumstances, or during times of divergence.

<h3>What kind of change occurs episodically?</h3>

A abrupt change, like a market crash, is known as an episodic change.

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5 0

2 years ago

Everly Corporation acquires a coal mine at a cost of $400,000. Intangible development costs total $100,000. After extraction has

8090 [49]

Answer:

Explanation:

The journal entry is shown below:

Inventory A/c Dr $73,500

To Accumulated depletion A/c $73,500

(Being the depletion is recorded)

The computation is shown below

First we have to compute the depletion per ton which is shown below:

= (Acquired cost of coal mine + Intangible development costs + fair value of the obligation - Sale value) ÷ (Number of estimated tons of coal extracted)

= ($400,000 + $100,000 + $80,000 - $160,000) ÷ (4,000 tons)

= $105

Now if 700 are extracted in first year, so the depletion would be

= 700 × $105

= $73,500

8 0

3 years ago

Barney decides to quit his job as a corporate accountant (which pays $10,000 a month) and go into business for himself as a cert

Dmitry_Shevchenko [17]

Answer:

a. $125

b. $10,300

c. $10,425

Explanation:

a. The computation of the explicit cost is shown below:

Explicit cost = Purchase of office supplies + Monthly electricity bill

= $75 + $50

= $125

b. The computation of the implicit cost is shown below:

Implicit cost = Lost of salary + rent out amount lost

= $10,000 + $300

= $10,300

c. The computation of the cost is shown below:

Economic cost = Explicit cost + Implicit cost

= $125 + $10,300

= $10,425

8 0

3 years ago

Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, th

DerKrebs [107]

Answer:

Allocated overhead= $173,137.5

Explanation:

Giving the following information:

Estimated overhead= $243,000

Estimated direct-labor hours= 8,000

Actual direct labor-hours were 5,700.

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 243,000/8,000

Predetermined manufacturing overhead rate= $30.375 per direct labor hour

Now, we can allocate overhead based on actual direct labor hours:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated overhead= 30.375*5,700= $173,137.5

8 0

3 years ago

Kinder Enterprises relies heavily on a copier machine to process its paperwork. Recently the copy clerk has not been able to pro

Elza [17]

Answer:

Operating costs = $7,000 x 5 years = $35,000

Operating costs = $2,600 x 5 years = $13,000

Explanation:

Operating costs = $7,000 x 5 years = $35,000

Operating costs = $2,600 x 5 years = $13,000

The current copier should be replaced. The incremental analysis shows that net income for the five-year period will be $3,000 higher by replacing the current copier.

6 0

3 years ago