Answer:
The amount of the promissory note plus the interest earned on the due date is called the maturity value.
Explanation:
Maturity value is the amount that has to be paid to an investor at the end of the debt's intrument period. The amount to be paid includes the interest earned during the period of the investment and the amount of money invested.
Answer:
Correct statement is (B)
Explanation:
Marketing channel is the combination of all the people who are responsible for delivery or reach of the product from producer to the last consumer.
Thus, it is a chain from producer to wholesaler to retailer and then to consumer.
Marketing channel makes sure about the market present for the next level. That is for producers it provides wholesalers, for wholesalers it provides retailers and to retailers it provides consumers.
Thus, statement (B) is correct.
Answer:
Cost recovery deductions do not have relationship to any decline in value of the property to which the deduction relates.
Explanation:
Capitalised costs are the cost that is incurred when building and financing a fixed asset. For example labour cost in building and financing an asset.
These expenses are added to the cost of the asset (capitalised) and taken gradually over time through depreciation, depletion, and amortization. They are not taken out of revenue in the period when they were incurred.
So cost deductions through capitalised cost is not related to the value of the asset but is an expense that is incurred in relation to the asset, and it's payment is spread out over time.
For example if $1,200 is incurred on construction of an asset worth $500,000. If $1,200 is capitalised over 12 months $100 will be deducted each month from expense. This does not affect the value of the asset ($500,000).
Answer:
The correct answer is A)
Explanation:
When products and or services are manufactured at a level that maximizes social welfare, allocative efficiency is said to have occurred.
A market system characterized as monopolistic competition may <u><em>never </em></u>achieve productive efficiency because firms often fix prices at a point higher than their marginal costs.
Marginal cost refers to the added cost incurred by producing or manufacturing one additional unit of a product.
Cheers!
The options are:
A switching production to products that absorb the least amounts of fixed manufacturing costs
B undervaluing ending inventory by not recording certain costs that have been incurred
C delaying items that absorb the greatest amount of fixed manufacturing costs
D switching production to products that absorb the most amounts of fixed manufacturing costs
E deferring maintenance to accelerate production
Answer:
deferring maintenance to accelerate production
Explanation:
In the production process if we want to increase operating income we need to reduce cost.
Producing for inventory to reduce cost involves production process that minimises what a business spends in order to increase profit.
A way this can be done is to defer or delay items increase cost of production.
For example if we defer maintenance to increase production, it will result in higher operating income.
