Answer: May enable management to manipulate net income
Explanation:
The Specific Identification method does in fact allow for some manipulation most especially when there are items that are identical but yet are not of the same cost.
To most customers, the items will be the same and therefore the retailer or management could just report selling an item of higher cost in order to lower paper profit and by extension net income.
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The second manager makes better decision amongst the two managers
Explanation:
Inventory refers to that part of the final goods or the products that have remained unsold for the current period. Generally, Inventory is associated with liability in the long term since they are associated with storage surcharges and obsolescence threats.
Amongst the two managers, the second manager is more capable of making a better decision since his decisions led to just 20% of the net produced goods to turn inventory which remains advantageous for the company. Whereas for the first manager, 80% of the items remain as inventory. Hence more risk and greater storage surcharges for the firm
Answer:
The right to a trial by an impartial jury
Explanation:
Answer:
A) Price elasticity of demand (PED) = 1
B) the PED is unitary
C) Danny's total revenue will decrease to $562.50
Explanation:
A) the formula for calculating price elasticity of demand is:
PED = % change in quantity demanded / % change in price
- % change in quantity demanded = (300 - 250) / 250 = 50 / 250 = 20%
- % change in price = ($2 - $2.50) / $2.50 = -$0.50 / $2.50 = -20%
PED = 20% / 20% = 1
B) the PED is unitary, it means that for every 1% change in the price, the demand will inversely change in 1%
C) since Danny lowered its price 20% from $2.50 to $2, he sold 20% more brownies, but his total revenue fell from $625 to $600. If he lowers his price even more, this time 25% to $1.50, his total sales will increase to 375 brownies, but his total revenue will continue to fall to $562.50
Answer:
Quasi contract
Explanation:
A Quasi contract refers to an agreement between two parties who owed no past obligation to one another. It is a kind of a fictional contract which the law recognizes.
The characteristic feature of a quasi contract is that obligation is not created by any of the parties but by law. Such a contract does not exist out of agreement but by the operation of the law.
The objective behind imposition of such a contract by the law is to ensure fairness and justness to a party.
In the given case, Ann out of mistake, mowed Donna's lawn. Ann acted in good faith as she wasn't aware at the time of performing her duty but Donna was fully aware and let the act of mowing done to her own advantage. Later when Ann realized and asked for payment, Donna refused.
In this case, the party who acted in good faith would be at a loss if the law does not intervene and impose a contractual obligation on Donna to pay Ann for her work. The contract imposed by law in such a case under which Ann would recover her payment would be termed as a Quasi Contract.
