Answer:
D. Replacement cost.
Explanation:
As we know that the inventory should be recorded at the cost or market value whichever is lower
Given that
Original cost is less than the net realizable value subtract the profit margin
So we assume the following figures
Original cost $10
Net realizable value 9
Replacement cost 8
NRV less normal profit margin 7
As if we compare the original cost and replacement cost so the lower value is of replacement cost
hence, the same is to be considered
Therefore the correct option is D.
I think its deflation or inflation
Answer:
C. a change in marginal cost causes the profit-maximizing level of output to change by the same amount and in the same direction
Explanation:
Kinked demand curve consider that the business may face a double demand curve based on the likely response of other firms to change in the price of product.
it assumes that the change in variable cost may not cause to rise or fall in the profit maximising price in the market.
Due to change in cost the equilibrium price and output of product remains constant
Answer:
Classifying a cost as either direct or indirect depends upon B: whether the cost can be easily traced with the cost object
Explanation:
The classification of a cost as direct or indirect depends on the connection to the cost object. If the cost can be linked undeviatingly to the cost object, it is direct. On the contrary, if it can't be traced to the cost object it is indirect.
A. whether a cost is fixed or variable. Incorrect. A direct cost can be fixed or variable.
B. whether the cost can be easily traced with the cost object. Correct.
C. the behavior of the cost in response to volume changes. Incorrect. This is a variable cost (or fixed that changes in relevant range)
D. whether the cost is expensed in the period in which it is incurred. Incorrect.
Answer:
b. social benefits will be greater than private benefits
Explanation:
Positive externalities can be defined as those that produce positive effects for society in relation to the consumption of a good or service.
This is because the social benefit is the sum of the private benefit plus the sum of the external benefit.
An example of positive externality pertinent to the present is the fact that vaccinating people generates greater positive effects on society, because when vaccinating an individual there is less chance of having more people infected with some disease.
So it is correct to say that the social benefits will be greater than the private ones. Letter b.
