Answer:
What is driving Anne's and Adam's decisions?
Opportunity cost
Explanation:
The opportunity cost is the amount of benefits expressed in monetary terms of picking one alternative over the other. It is an economical aspect as opposed to an accounting aspect. It is mostly beneficial to business people or investors who have a variety of business opportunities that requires an investment. Since they are not always considered in financial reports, they are often an unnoticed and may not be considered in most cases. This can cause the occurrence of missed opportunities that might have been more beneficial than the option chosen. The opportunity cost can be calculated using the formula below;
O.C=F.O-C.O
where;
O.C=opportunity cost
F.O=return on best foregone option
C.O=return on chosen option
In our case, Anne had to consider either continuing to sell the same number of dresses or increasing her production to capitalize on the profit margins. She chose to increase her production. Adam also had two alternatives; to utilize the opportunity of buying furniture at a lower cost down the street within two days before the offer ends or buying furniture expensively after the end of the offer. Adam chose to utilize the offer and bought the furniture a half-price sale.
Answer:
the yearly depreciation expenses are $ 1, 144,571.43
Explanation:
First determine the Cost of the PPE
in terms of IAS 16, the cost of a PPE item includes the Purchase Price and any direct costs related to placing the asset in the condition and location intended for use by management.
<u>Cost of the PPE item</u>
Purchase Price $ 5,000,000
<em>Add</em> Delivery and Installation Costs $12,000
<em>Add</em> Building Costs $ 3,000,000
Total Cost $8,012,000
Then Calculate the Depreciation
Depreciation on Straight Line = Cost/Useful Life
= $8,012,000 / 7 years
= $ 1, 144,571.43
Answer:
The correct option is C,the director is not subject to the restrictions on short-swing profits.
Explanation:
The short-swing profit rules apply to company's insiders such the directors who have access to sensitive share price information of the company.
The rules mandated that such insiders return to the company any profit made in dealing in the shares of the company if both purchase and sale of shares occur within six months.
However, the director in question is not subject to short-swing profits since the profits of $1,500 made on January 15($35-$30) *300) was cancelled out by the loss of -$1,500 made on February 3 ($20-$25)*300).
Answer:
The answer is Area 1 for the size of producer
Explanation:
Referred to the image attached we infer that:
Consumers’ surplus has gone down by (area 2 + 4)
Size of producers (area 1)
There is a violation of antitrust laws that happens that unreasonably restricts competition and functions against the public interest. This is just one of the three parameters that apply to a business and how they may violate antitrust laws. An Antitrust law is a state and federal recognized law that is in place so that there can be adequate business competition.