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2 years ago

In many cases, it is reasonable to refer to the ________________ as the price.

1 answer:

6 0

Most time, it is reasonable to refer to the opportunity cost as the price because it entails the benefit of the foregone good or service.

<h3>What is an opportunity cost?</h3>

It refers to a value of what is rejected in order to perform the chosen alternative, that is, the value one have to give up to buy what you want in terms of other goods or services.

Therefore, it is sometimes reasonable to refer to the opportunity cost as the price because it entails the benefit of the foregone good or service.

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3. Why would the sale of counterfeit products through its sites be damaging to Alibaba?

timurjin [86]

Reputation.

If a company has a bad reputation of allowing the sale of counterfeit goods, buyers will not trust the site and will not buy from it.

3 0

3 years ago

Read 2 more answers

7. DuPont Identity. X Corp. has net income of $20 million, Sales of $100 million, asset turnover of .6, and debt-equity ratio of

goldfiish [28.3K]

Answer:

Explanation:

Net Income = 20m

Sales = 100m

Debt-equity ration = 40%

Asset turnover = 0.60

Profit Margin = Net Income / Sales = $20 million / $100 million = 20%

Equity Multiplier = 1 + Debt-Equity Ratio = 1 + 0.40 = 1.40

Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier = 20% * 0.60 * 1.40 = 16.80%

Debt-equity ratio = 60%

Equity Multiplier = 1 + Debt-Equity Ratio = 1 + 0.60 = 1.60

Return on Equity = Profit Margin * Asset Turnover * Equity Multiplier = 20% * 0.60 * 1.60 = 19.20%

As calculations provide, if debt-equity ratio increases to 60%, Return on equity will increase by 2.40% (19.20% - 16.80%)

7 0

3 years ago

Effect of Inventory Errors

pav-90 [236]

Answer:

Effect of Inventory Errors

1. Kate Interiors Company:

Ending Inventory of $378,500 counted as $366,900.

This shows that Ending inventory is undervalued by $11,600 ($378,500 - 366,900).

The cost of goods sold will be overstated by $11,600 and the net income understated by $11,600 in the income statement.

In the balance sheet, the assets are understated by $11,600 and Equity (Retained Earnings) understated by the same amount.

2. Waterjet Bath Company:

Ending Inventory of $719,880 counted as $728,660.

This shows that Ending inventory is overvalued by $8,780 ($728,660 - 719,880).

The cost of goods sold will be understated by $8,780 and the net income overstated by $8,780 in the income statement.

In the balance sheet, the assets are overstated by $8,780 and the Equity (Retained Earnings) overstated by $8,780.

Explanation:

An overstatement of Ending inventory results in understated cost of goods sold and overstated net income. Conversely, an understatement of ending inventory results in overstated cost of goods sold and understated net income.

7 0

3 years ago

Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. The costs of producing and s

Amiraneli [1.4K]

Answer:

(a). Total variable Cost = $2,890,000

Total variable Cost Per Unit = $289

(b). Variable Cost Markup Percentage = 12.46%

(c). Selling Price Per Unit = $325

Explanation:

According to the scenario, computation of the given data are as follow:-

a). Total Fixed Cost = Selling and Administrative Expenses + Factory Overhead

= $140,000 + $350,000 = $490,000

Fixed Cost Per Unit = Total Fixed Cost ÷ Cost of Produced and Selling Units

= $490,000 ÷ 10,000 = $49

Total variable Cost Per Unit = Fixed Cost Per Unit + Variable Cost Per Unit

= $49 + $240 = $289

Total variable Cost = Cost of Produced and Selling Units × Total Cost Per Unit

= 10,000 × $289 = $2,890,000

b). Desired Profit = Invested Assets × 30%

= $1,200,000 × 30÷100 = $360,000

Variable Cost Markup Percentage = Desired Profit ÷ Total Cost

=$360,000 ÷ $2,890,000 = 0.1246 = 12.46%

c). Selling Price Per Unit = (1 + Variable Cost Markup Percentage) × Total Cost Per Unit

= (1 + 12.46%) × $289

= 1.1246 × $289

= $325

7 0

3 years ago

How can data analytics improve the measurement of employees' performance?

N76 [4]

Data analytics can help improve the measurement of employees' performance by allowing a company, management team and employee understand what they can improve on as a whole and what they are doing correctly. The data analytics will allow a company to analyze their current employee performance and compare it with past performances. This will allow the company and the employees to see what and where improvement is needed.

8 0

3 years ago