Answer:
Make Buy
Direct material 85100
Direct labour 253000
Variable manufacturing overhead 52900
Fixed manufacturing overhead 69000
Opportunity cost 73000
Purchase cost 437000
Total 533000 437000
Financial advantage is 96000
Explanation:
Answer:
a. Increase
Explanation:
The price earnings ratio is calculated by dividing the market value per share by the earning per share. This means that the price of the share is in the numerator and the earnings per share is in the denominator. If the denominator increases the ratio will decrease and if the numerator increases the ratio will increase. In this case the price of the stock which is the numerator increases from 15 to 18 whereas the earnings which is the denominator remains the same, this means that the price earnings ratio will increase. We can see this example numerically
We know the price of the stock was $15, lets assume the earnings were $1. So before the price change the earnings per share ratio would be 15/1= 15.
When price increases to $18 and earnings remain the same the new price earnings ratio will be 18/1=18. This proves that when earnings are constant and price per share increases the price earning ratio increases.
Answer:
C.
Explanation:
Wholesaling consist of the sale and all activities in selling goods or services to those who buy for resale or business use.
Characteristics of Wholesaling:
-Wholesalers generally buy merchandise direct from the producers in large quantity mainly in cash.
-They are trading concern having an army of agents and stocks the large quantity of goods, supply or sell goods to the directly or through their agents in small quantities.
-Wholesalers are financially good health. They purchased goods in cash from the manufacturer and sell to the retailers on credit.
-Wholesalers profit margins is very small so that they can maximizes their sales volume to earn maximum profit.
-They deals in limited product line or products.
-They maintain warehouse and godown at different places in the country to facilitate the trade at minimum transportation charges.
They sometimes make the grading of goods under their own name or brand name.
Answer:
Option D, E and F. See below for information.
Explanation:
Costs are capitalized when they form a principal part of the asset. These costs may include any costs that are needed to make the asset operational and any costs that are incurred to bring the asset to operating premises.
As such the $15,000 freight bill that brings the asset in premises, the invoice price of $500,000 which comprises the cost of the capital asset and the one time cost of $8,000 to tear down the wall and install the asset are all capital costs and are to be capitalized in the final cost of the asset to be recorded.
All other are annual expenses are not to be capitalized (Option a, b and c)
Hope that helps.
Answer:
C=$53000
Explanation:
using the direct method of cash flow
Cash flow from operating Activities
opening stock Assumed = Nil
Cost of goods sold = 54000
Add: Stock increased by = 2000
Total Purchases (54+2) = 56000
Closing Paybles Increase by = (3000)
Cash Payments = opening + Purchases-closing payables
Cash Payments = Nil+56000-3000 = 56000
