Answer:
The primary advantage they refer to is additional sales revenue.
Explanation:
Extending credit to customers is generally done through use of credit cards these days. This does allow the customers to buy goods and services on credit and pay later for those goods.
Offering credit is beneficial for both the shopkeepers or merchants and the buyers. Customers do not have to pay cash (as they can run out of cash at times), so they buy more and this increases the sales revenue for the merchants, which becomes the primary advantage for them and outweighs the costs.
Answer:
(d) $6,000
Explanation:
The computation of the total liabilities is shown below:
Total liabilities = Office equipment purchased - cash paid
= $10,000 - $4,000
= $6,000
The remaining amount would reflect the note payable which is come under the liabilities accounts which is shown in the balance sheet.
The other information which is given in the question is not related to the liabilities account. Hence, we ignored it.
Answer:
17%
Explanation:
To calculate this, we use the weighted average cost of capital (WACC) as follows:
Total capital = 15 + 5 = 20
Weight of equity = 15/20 = 0.75, or 75%
Weight of debt = 5/20 = 0.25, or 25%
WACC = (20% × 75%) + (8% × 25%) = 17%
Therefore, the company's cost of capital is 17%.
The I believe the answer is undifferentiated marketing
Answer:
They have increased the importance of production economies of scale.
Explanation:
Flexible production allows the manufacture of different types of products in the same industrial production line. This makes companies lower costs by avoiding tool change, time savings, and industry structure.
This type of economy fits into the description of economies of scale. Economies of scale are those where the increase in production results in a decrease in the average cost of the product. Increasing production - by including more products on the production line - without a proportional increase in the factory's installed capacity leads to a reduction in the average cost of production, ie it is an economy of scale.
