Answer:
B and C are the same, and none of the answers are correct
Explanation:
Capital gain is the amount of money you earn after selling a property or investment. It's essentially (the price you sold it for) -- (the price you paid for it)
eg if you bought stock for $100 and sold it for $200, you'd have a capital gain of $100 (200-100)
More money, bring more skills, one person isn't reliable for the entire business
Answer:
C. A rise in saving does not change aggregate demand.
Explanation:
Say's law states that the production of goods creates its own demand.
According to Say's law, in a money economy, a rise in saving does not change aggregate demand because total expenditure amount does not change, it only moves from consumption category to the investment category in equal proportion.
Also, disposable income stays constant and consumption decreases, while savings increases.
Savings = disposable income - consumption.
Answer:
Process Costing
Explanation:
Process Costing allows so many units to be in production at the same time which are identical. The cost of each unit can be determined by calculating the average price using to total units produced.
Answer:
Financial advantage of purchasing Cisco from outside vendor = $9,440
Explanation:
7,900 units produced
variable costs allocated to Cisco units (avoidable):
- direct materials $4.58 per unit
- direct labor $4.51 per unit
- indirect labor $0.45 per unit
- utilities $0.41 per unit
- total $9.95 x 7,900 units = $78,650
fixed manufacturing costs allocated to Cisco:
- depreciation $860
- property taxes $320
- Insurance $610
- total $1,790
an outside supplier can provide Cisco for $63,200 plus:
- freight and inspection costs $0.60 per unit x $7,900 = $4,740
- total receiving costs $1,270
- total $6,010
Incremental Analysis
Produce Purchase Difference
Cisco Cisco amount
Variable production $78,650 $78,650
costs
Purchase price $63,200 ($63,200)
Additional expenses $6,010 ($6,010)
Financial advantage of purchasing Cisco $9,440
Allocated fixed costs are not included in this analysis since they cannot be avoided by either action, producing or purchasing.
