Answer:
Total equivalent units of materials =67,000 units
Explanation:
Equivalent unit is computed as follows:
Equivalent units =Degree of completion × units of inventory
Fully worked = 67,000-6,700= 60,300
Closing inventory = 6,700
<em>Item Equivalent unit</em>
Fully worked 100%× 60,300= 60,300 units
Closing inventory = 100%× 6,700=<u> 6,700</u> units
Total equivalent units 67,000 units
<em>Note that we used 100% as the degree of completion for materials because materials required are always added at the beginning of the process</em>
Answer:
The correct answer is D. The Tradeoff Theory suggests that a firm should choose a debt level where the tax savings from increasing leverage are just offset by the increased probability of incurring the costs of financial distress.
Explanation:
The trade-off theory of capital structure states that companies choose their leverage ratio to maximize benefits and minimize costs. The classic version of the hypothesis goes back to Kraus and Litzenberg, who observed a balance between the risk of loss of welfare from impending bankruptcy and the tax benefits of outside capital. In the trade-off theory, debt and equity financing are calculated in such a way that the present value of the tax shield is as large as possible and the present value of the costs of “financial distress” is possibly small.
Answer:
1. B2B refers to Business to Business transactions.
Here businesses engage in buying and selling transactions of goods and services amongst themselves. An example includes Wholesalers selling to Retail stores.
2. B2C refers to Business to Customer transactions.
This is when the business sells directly to the customer thereby cutting out the need for the Middlemen. It is the term that online retailers fall under as they sell directly to customers from their websites.
An example therefore is ordering from Amazon.
3. B2G refers to Business to Government transactions.
This includes the business transactions between the businesses and the Government be it Federal, State or Local level. Here businesses bid on the services that the government wants provided and the Government chooses the best alternative. An example is Boeing building B-52 Bombers for the US Armed Forces.
4. C2C refers to Customer to Customer transactions.
These transactions occur when people sell their goods and services directly to one another. This can happen when they post their wares online and other individuals buy it from there.
An example would be eBay where people post their goods and others buy it.
