Answer:
A. Average accounting cost is $125 ($50 + $75), hence Average Accounting Profit is $11,875 ( $12000 - $125). This is because Accounting profit does not take into account the opportunity cost.
B. Unlike Accounting Profit, Economic or if it takes into account the opportunity cost, that is the forgive alternative.
The total economic cost of Barney is $10,425 ($10,000+$300+75+50) which represent his previous wages as a corporate an accountant, the opportunity cost of using his garage as office, his office equipment purchase and electricity bill payment respectively.
Hence Economic Profit is $1575 ($12000- $10425)
Explanation:
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
a.
Unleaded fuel prices are expected to fall by June 2019 according to future demand forecasts.
Since the future price is less than the spot price, it would be better for long-term buyers who can wait for the price to increase because the market is currently in BACKWARDATION. This happens due to a short-term disparity in demand and supply.
b.
If the information in this sector is reliable and impartial, the expected June price will most likely be similar to the real price we will see in June.
It is reliable if the market is accurate and impartial, i.e. the market research on which knowledge flows.
The prices of goods are either integrated or expressed in such a flow of knowledge.
So, if it's unbiased and reliable, the forecast prices would be reasonably similar to the real future price.
Answer:
($500) = NA + NA + ($500)
Explanation:
In this question, the following accounting equation is used
Assets = Liability + common stock + retained earnings
As in the transaction, it is given that $500 cash is paid for advertising expense, so this event would be affecting the accounting equation for asset and the retained earning account i.e
($500) = NA + NA + ($500)
As cash is paid which reduces the asset balance plus the retained earning balance is also get reduced by $500
Answer:
is used to control costs of manufacturing activities
helps managers determine selling prices
Explanation:
A "cost accounting system" allows a business to examine its costs. The information of these costs are then collected in order to help the company control its costs and come up with<em> an estimate of their product's cos</em>t. An accurate cost allows a company to be profitable. So, this allows the managers to determine selling prices. Costs regarding manufacturing activities are also taken into consideration.
The cost accounting system is not only used with a perpetual inventory system. It can also be used with a periodic inventory system. It does not necessarily provide a general information used by investors, rather it provides an internal information. It can also adapt according to the needs of the company. Financial accounting provides information to the <em>outside investors.</em>
<em />
Answer:
The value of market shares is directly proportionate to the amount of money spent on advertising
Explanation:
Advertising is part and parcel of promotion, which is targeted at encouraging customers to buy one's product by taking them through the AIDA sequence of promotion.
AIDA is an acronym for Awareness,Interest,Desire and Action, where creating awareness by bringing the products to the attention of the customers through advertising results in interest and desire being aroused and eventually leading to action of buying the product which ultimately leads to repeat buying and increase in market share overall.
