Specialization is a method of production whereby an entity makes a specialty of the production of a limited scope of products to advantage a greater degree of performance.
The benefits of specialization consist of: a larger amount of goods and offerings that may be produced, progressed productiveness, production beyond a kingdom's manufacturing possibility curve, and sources that may be used more effectively. Specialization also can result in a comparative gain.
International locations specialize, this alternative creates gains from trade. The advantages of specialization encompass a bigger amount of products and offerings that may be produced, stepped forward productivity, production beyond a country's production opportunity curve, and ultimately, assets that can be used more correctly.
Learn more about specialization trade here:brainly.com/question/24448534
#SPJ4
Answer:
The correct answer is $220,500.
Explanation:
According to the scenario, the computation of the given data are as follows:
We can calculate the net operating cash flow by using following formula:
Net operating cash flow = Net income - ( Ending - Beginning Inventory) - ( Beginning - ending in AP)
By putting the value, we get
= $226,000 - ( $49,000 - $48,000 ) - ( $39,000 - $34,500)
= $226,000 - $1,000 - $4,500
= $220,500
Answer:
A. Contribution margin of $250,000 and C. Gross profit of $230,000.
Explanation:
Sales = $350,000
Cost of goods sold = $120,000
Total fixed expenses = $60,000
Total variable expenses = $100,000
Therefore,
Gross profit = Sales - Cost of goods sold
= $350,000 - $120,000
= $230,000
Contribution margin = Sales - Total variable cost
= $350,000 - $100,000
= $250,000
The right options are A. Contribution margin of $250,000 and C. Gross profit of $230,000.
Answer:
a. Describe how the average accounting return is usually calculated and describe the information this measure provides about a sequence of cash flows. What is the AAR criterion decision rule?
Average accounting return = average net income / average investment
The problem with AAR is that net cash flows are not equal to net income since depreciation expense and changes in net working capital are not accounted for by AAR.
The criterion decision rule is that projects with an AAR above a certain measure.
b. What are the problems associated with using the AAR as a means of evaluating a project’s cash flows? What underlying feature of AAR is most troubling to you from a financial perspective? Does the AAR have any redeeming qualities?
it doesn't consider net cash flows, nor time value of money. Personally, accounting is an extremely important tool but it only reflects a partial perspective of a business. E.g. a business might have a huge net income but if it doesn't have enough cash to function, it will go bankrupt. In finance, cash is king.
Personally, my biggest problem with AAR is that it doesn't consider net cash flows. I've been on situations where the company I worked for was apparently doing great, but our accounts receivables were huge and we couldn't collect money fast enough. My job was basically go to different banks and convince them of loaning us cash. The worst part was that even without being able to collect cash, we still had to pay taxes and that was another huge problem.
I believe that AAR is still used because of its simplicity. Also, taxes are paid based on accounting profits and many firms base they compensation plans on them.
Answer:
C.
Explanation:
As a current liability. Are obligations of the company that are expected to get paid whitin the period of one year and include liabilities such as Accounts payable, short term loans, bank overdraft, interest payable and the other liabilities of the company that are current.
