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1 year ago

How can firms avoid incurring high transport costs when exporting bulk products?

Business

1 answer:

Sunny_sXe [5.5K]1 year ago

7 0

Firms can avoid incurring high transport costs when exporting bulk products by manufacturing bulk products regionally.

Transportation costs are all the charges related to the transportation of uncooked substances, finished merchandise, and personnel. it is the cash at the back of ensuring all moving components get in what they want to be so your customers get their products or services on time.

Now, you need to determine all your transportation level costs. look at how lots you paid for drivers, gasoline, special licenses, purchasing/leasing motors, outsourced paintings, and every other system related to transportation. upload this kind of collectively to get the total fee of transportation.

Techniques of lowering logistic prices can range from optimizing stock degrees to recharting higher transport networks, to growing higher procedures, enhancing dealer/1/3 celebration relationships, and so on.

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During the current fiscal year, jeremiah corp. signed a long-term noncancellable purchase commitment with its primary supplier.

ivanzaharov [21]

Answer:

Option A. Debit unrealized holding gain or loss for $400,000 and credit estimated liability on purchase commitment for $400,000.

Explanation:

According to the Accounting Principles losse are always debited and gains are always credited. This means that the notional loss or gain due to the decrease or increase in the value of the contract must be recorded in the current year by debit or credit respectively.

The notional gain or loss at the end of fiscal year, can be calculated by taking the difference of the Agreed value and the current market value of the contract.

The agreed value of the contract is $2,000,000 and the Market Value is $1,600,000, which means that the unrealized losses are $400,000 ($2,000,000 - $1,600,000).

The double entry would be recording the losses of $400,000 due to technologically decrease in the value:

Dr Unrealized Loss $400000

Cr Estimated liability on Purchase Commitment $400000

8 0

2 years ago

On December1, Mountain and Meadow Tree Service prepaid $6,600 for six months' rent. Give the adjusting entry to record rent ex

DerKrebs [107]

Answer:

Mountain and Meadow Tree services prepaid rent $6,600 on December 1 for 6 months rent.

Note for asset and expense accounts when they increase you debit and when they reduce you credit.

The first entry

On December 1 : Debit Prepaid Rent account for $6,600

Narration: Prepaid rent for 6 months

Balance: $6,600

Since the rent is for 6 months, monthly payment will be= 6,600/6= $1,100

On December 31 post the following adjusting entries

December 31 : Debit Rent Expense $1,100

Narration: Rent for December

Balance: $1,100

December 31 : Credit Prepaid Rent $1,100

Narration: Rent for December

Balance: $5,500

6 0

3 years ago

Song earns $100,000 taxable income as an interior designer and is taxed at an average rate of 20 percent (i.e., $20,000 of tax).

Brut [27]

a. If Song earns only $75,000 in taxable income, the government's tax revenues will be $18,750 ($75,000 x 25%) and <u>a. Government's tax revenues would decrease by $1,250.</u>

b. The term that describes this type of reaction to a tax rate increase is <u>d. Income effect.</u>

c. The taxpayers that will likely respond in this manner are <u>b. Taxpayers with more disposable income.</u>

<h3>Data and Calculations:</h3>

Song's taxable income per year = $100,000

Average tax rate = 20%

Tax liability per year = $20,000 ($100,000 x 20%)

<h3>New Tax Regime:</h3>

Tax rate = 25%

New taxable income of Song = $75,000

Tax liability = $18,750 ($75,000 x 25%)

Thus, if the tax rate is increased from 20% to 25% forcing Song to reduce his taxable income to $75,000, <u>a. Government's tax revenues would decrease by $1,250.</u>

<u />

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5 0

2 years ago

A corporation makes an investment of $20,000 that will provide the following cash flows after the corresponding amounts of time:

s344n2d4d5 [400]

A) The company should not invest in the provided project due to the negative NPV of the project.

B) The NPV of the project comes out to be (286).

NPV is an abbreviated form of Net present value and computed by deducting the cash outflows from cash inflows at the present value.

Given values:

Cash flow of year 1: $10,000

Cash flow of year 2: $10,000

Cash flow of year 3: $2,000

Cash outflow (cost of investment) =$20,000

Step-1 Computation of PV of cash inflows of every year:

PV of year 1 = Cash inflow of year 1 / (1+ interest rate)^ 1

= $10,000 / (1+0.07) ^ 1

= $10,000 X 0.934579

= $9,346

PV of year 2 = Cash inflow of year 1 / (1+ interest rate)^ 2

= $10,000 / (1+0.07) ^ 2

= $10,000 X 0.873438

= $8,735

PV of year 3= Cash inflow of year 1 / (1+ interest rate)^ 3

= $2,000 / (1+0.07) ^ 2

= $2,000 X 0.816297

=$1,633

Step-2 Computation of total amount of PV of cash inflows:

$\rm\ PV \rm\ of \rm\ cash \rm\ inflows = \rm\ PV \rm\ of \rm\ year \rm\ 1 + \rm\ PV \rm\ of \rm\ year \rm\ 2 + \rm\ PV \rm\ of \rm\ year \rm\ 3\\\rm\ PV \rm\ of \rm\ cash \rm\ inflows =\$9,346 + \$8,735 + \$1,633\\\rm\ PV \rm\ of \rm\ cash \rm\ inflows =\$19,714$

Step-3 Computation of NPV:

$\rm\ NPV=\rm\ PV \rm\ of \rm\ cash \rm\ inflows- \rm\ Cost \rm\ of \rm\ investment\\\rm\ NPV=\$19,714-\$20,000\\\rm\ NPV=\$ (286)$

Therefore, the NPV comes out to be a negative amount of 286, and hence, the company should not accept the project.

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5 0

2 years ago

Fayol's Principles of Management provide an accurate description of what managers actually do on the job.

ch4aika [34]

Answer:

b) false

Explanation:

This statement is false, because Fayol's management principles were an administrative methodology that provided for observing the facts of an organization and the experiment, being therefore principles that are unable to provide an accurate description of what managers do in the job.

Its management principles consist of: Division of Labor, authority, discipline, management unit, control unit, Subordination of individual interests to the common good, remuneration, centrality, hierarchy, order, equity, stability, initiative and team spirit.

He believed that this set of principles would lead to more effective management where the company would achieve greater efficiency through structural organization and the control and monitoring of functions.

6 0

3 years ago