Answer:
Prices ensure an equal distribution of goods and services among consumers.
Explanation:
The price mechanism helps in the efficient allocation of resources. There are a number of functions performed by the price mechanism. Prices send signals regarding resources. An increase and decrease in prices reflect surplus and deficit.
Price balances the demand and supply of a product. Price is inversely related to demand and positively related to the supply of a product. It is determined by the interaction of demand and supply and helps in balancing supply and demand.
For instance, an increase in demand would increase the price, this higher price will motivate the suppliers to increase quantity supplied thus balancing demand and supply.
Price helps in coordinating economic activities and helps buyers and sellers in decision making. However, they do not help in equal distribution of goods and services among consumers.
Answer:
c) Broker Factor.
Explanation:
A broker factor is an agent that sells goods that are from someone else for a comission and this person takes possession of the products that is selling. Also, a broker factor can make a sell in his/her name and has authorization to receive the money from the sale. Because of this, Mike's relationship with K&M is that of a broker factor.
Answer:
Foreign currency transaction loss : $1000
Account payable : $1000
Explanation:
The auditor's count of the client's cash should be coordinated to coincide with the ''count of investment securities'' since both mean counting/managing money.
Answer: D.No. Since 26 is less than the break-even quantity, production of the product cannot produce a profit
Explanation:
At Breakeven the company will be making $0 in profit. The break-even number of units will therefore be;
0 = Revenue - costs
0 = 520x - (390x+15,340)
0 = 520x - 390x - 15,340
0 = 130x - 15,340
130x = 15,340
x = 118 units
As the break-even point is 118 units, anything below this will yield a loss. As the company has a capacity of 26 units, this is below the breakeven point so the company should not produce the good as they will surely make losses.
