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2 years ago

The extra costs incurred to avoid holding cash when there is inflation are called the?

Business

1 answer:

Ipatiy [6.2K]2 years ago

8 0

The extra costs incurred to avoid holding cash when there is inflation is called Shoe Leather cost.

<h3>What do you understand by inflation?</h3>

The rate of price growth over a set time period is known as inflation. Sometimes the amount of inflation is expressed in general terms, such as the overall rise in price or the rise in the cost of living nationwide. However, it can also be calculated with more accuracy for some goods, such as food, or for services, like a haircut, etc. In any circumstance, inflation refers to how much the necessary array of goods and/or services has increased in price during a specific time period, most usually a year.

To know more about inflation, visit:

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Global Pictures is about to release their second feature film. Their first film was a blockbuster, and their pre-release campaig

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Answer: Formulate criteria; so that the group members know the group goal and when it has developed a good solution

Explanation:

Standard agenda came about through John Dewey and he refered to it as the process whereby through reflective thinking, individuals find solutions to issues.

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3 years ago

The risk-free rate, average returns, standard deviations, and betas for three funds and the S&P 500 are given below. Fund Av

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Answer:

Portfolio A is preferred.

Explanation:

Given the following sorted data from the question:

Fund Avg Std Dev Beta

A 17.5% 26.5% 1.35

B 12.5% 23.5% 1.10

C 13.5% 20.5% 1.15

S&P 500 10% 15% 1

rf 4.0%

To determine the preferred portfolio, the Treynor measure for each portfolio is estimated as follows:

Treynor measure = (Avg - rf rate) / beta

Therefore, we have:

Treynor measure of Portfolio A = (17.5% - 4.0%) / 1.35 = 10.00%

Treynor measure of Portfolio B = (12.5% - 4.0%) / 1.10 = 7.73%

Treynor measure of Porfolio C = (13.5% - 4.0%) / 1.15 = 8.26%

Since the 10% Treynor measure of Portfolio A is the highest, Portfolio A is preferred.

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4 years ago

Who are venture capitalists? A. investors who see growth of a company but invest using other people’s money B. buyer who convert

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Answer:

A. investors who see growth of a company but invest using other people’s money

Explanation:

A venture capitalist is an employees of a venture capital firm . These capitalists are private equity investors who provide capital to business startups and small businesses using other people's money held in a fund. Even though these businesses have the potential for exponential growth, they usually have a high risk. Additionally, if the startup goes under, they are not obligated to pay back these venture capitalists.

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4 years ago

Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $260,000, and budgeted d

skad [1K]

Answer:

Naranjo Company

a. The overhead rate = $0.52 or 52%.

b. Job-order Cost Sheet:

Job 39 Job 40 Job 41 Job 42 Total

Beginning balance $23,700 $34,600 $17,000 $0 $75,300

Materials requisitioned 18,900 21,400 8,350 12,000 60,650

Direct labor cost 10,000 18,500 3,000 2,900 34,400

Overhead applied 5,200 9,620 1,560 1,508 17,888

Total production costs $57,800 $84,120 $29,910 $16,408 $188,238

Explanation:

a) Data and Calculations:

Budgeted overhead for the year = $260,000

Budgeted direct labor hours = 20,000

Direct labor rate = $25 per hour

Total budgeted direct labor cost = $500,000 ($25 * 20,000)

Predetermined overhead rate, based on direct labor cost

= $260,000/$500,000 * 100 = 52% or $0.52

Job Sheet:

Job 39 Job 40 Job 41 Job 42 Total

Beginning balance $23,700 $34,600 $17,000 $0 $75,300

Materials requisitioned 18,900 21,400 8,350 12,000 60,650

Direct labor cost 10,000 18,500 3,000 2,900 34,400

Overhead applied 5,200 9,620 1,560 1,508 17,888

Total production costs $57,800 $84,120 $29,910 $16,408 $188,238

Applied Overhead:

Job 39: $10,000*52% = $5,200

Job 40: $18,500*52% = $9,620

Job 41: $3,000*52% = $1,560

Job 42: $2,900*52% = $1,508

Sales revenue $69,360 ($57,800 * 120%)

Cost of goods sold $57,800

Finished goods inventory $84,120

Work in progress inventory $29,910 $16,408

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3 years ago