Answer:
increase in income of $80
Explanation:
Prepare an Analysis of Costs and Savings if the Company buys from Outside Supplier.
Note : The fixed costs per unit at are unavoidable are irrelevant and disregarded in this decision.
<u>Analysis of Costs and Savings</u>
Purchase Price (400 widgets × $44.00) = ($17,600)
Savings :
Variable Costs ($35.60 × 400 widgets) = $14,240
Fixed Cost ( $8.60 × 400 widgets) = $3,440
Net Income effect = $80
Conclusion :
The effect on net income if the company instead buys the widgets is an increase in income of $80
Answer:
True
Explanation:
Risk management is the practice of identification of number of risks that the organization faces and then assessing each of them. After assessment of the risks, the organization try to find ways to eliminate or reduce each single risk so that the business operations do not get affected. The precautionary measures can be simply avoid the risk, face the risk, share the risk (Insurance) and reduce the risk to acceptable level.
Answer:
$433,900
Explanation:
The computation of the capitalized cost of the land is shown below:-
Capitalized cost of the land = Purchase price + Demolition of building + Title insurance + Attorney fee + Property taxes covered during the period - Scrap value from the building
= $420,000 + $12,000 + $900 + ($3,000 - $500) - $1,500
= $420,000 + $12,000 + $900 + $2,500 - $1,500
= $435,400 - $1,500
= $433,900
Answer:
B, a decrease in the stock's beta.
Explanation:
A stock's beta is the determination of the stock's volatility in comparison with the market.
Simply put, it is the determination of how easily a stock will crash. The lower the beta of a stock, the less likely it is to be volatile.
Mostly, stocks with a volatility below 1.0 is less volatile compared to stocks with a beta above 1.0.
The beta of a stock is calculated by finding the rate, the rate of return and the market rate of return of the stock. All of these above are to expressed as a percentage. Having gotten the percentages from above, the risk free rate is subtracted from the rate of return of the stock. After that, the risk free rate is also subtracted from the market rate of return.
The value from the first subtraction is divided by the value from the second subtraction.
Cheers.
Answer:
The correct answers are the following options:
After recording the transaction, total assets will always equal total liabilities plus equity.
The accounting equation must always remain in balance
Explanation:
To begin with, the name of <em>"Accounting Equation"</em> is famously known in the business field due to the fact that it is a concept from the accountant of companies and in fact a very important one. The accounting equation represents the sum between the equity and the debts of the company that will always give the total assets of the company. It is considered to be the foundation of the double-entry accounting system, so that is why it is so important. Moreover, under its doctrine, it proves that the balance sheet must always remain balance.
