Answer:
Variable costs vary with the volume of production and can be changed in the short run.
Fixed costs do not vary with the volume of production and cannot be changed in the short run. Only in the long run can they be changed.
Variable costs:
- Advertising expenditures
- Fuel
- Shipping charges
- Payments for raw materials
- Wage payments
- Sales taxes
Fixed costs:
- Interest on company issued bonds
- Real estate taxes
- Executive salaries
- Insurance premiums
- Rental payments on leased office machinery.
Answer:
200 cookies
Explanation:
The concept of opportunity cost arises as a result of the limited resources available to satisfy the unlimited human wants.
Opportunity cost is the cost or worth of the item forgone from the list of wants. Hence is is also called real cost or opportunity foregone.
The scale of preference ranks the wants in the order of preference.
If the resources available can only satisfy the first want, the second on the list is the opportunity cost.
As such, Susan's opportunity cost is the 200 cookies she failed to bake.
Medicare Summary Notice is a notice given to people who have undergone medical services or got medical supplies within a 3-month period. It is not a bill but a notice that comprise the details of the medical services or medical supplies that has been billed to Medicare within the 3-month period.
Answer:
The investment in Son Corp. should be reported on Pops' December 31, 2018 balance sheet at $1,920,000 ($10 * 192,000).
Explanation:
There is no indication that the fair price of the shares of Son Corp. has changed from its original cost of $10. Therefore, the investment in Son Corp. can only be reported on the balance sheet of Pops' at the cost price on acquisition. But, assuming that the price has fluctuated over the period, the investment would have been valued at the current market price multiplied by the number of shares.
Answer:
All of the statements above are correct.
Explanation:
All of the following statements listed below are correct and true about business management;
1. Many large firms operate different divisions in different industries, and this makes it hard to develop a meaningful set of industry benchmarks for these types of firms.
Hence, industry average or benchmarks are more applicable to a small and medium enterprise than it's to large enterprises. The industry benchmark is a process that is focused on comparing an industry with other successful industries.
2. Financial ratios should be interpreted with caution because there exist seasonal and accounting differences that can reduce their comparability.
Hence, it is important to interpret financial ratios with care and reasonable logic as factors such as inflation and depreciation.
3. Financial ratios should be interpreted with caution because it may be difficult to say with certainty what is a "good" value is neither high nor low.
4. Ratio analysis facilitates comparisons by standardizing numbers.
Ratio analysis can be defined as the analysis and comparison of various line items in the financial statements of a business such as the income statement or balance sheet, in order to gain insight into its operational efficiency, profitability and liquidity. Types of ratio analysis are liquidity, efficiency, solvency, market value, and profitability ratio.