All categories

2 years ago

Why is the cost of goods sold account part of a trading business only?

Business

1 answer:

Lisa [10]2 years ago

5 0

Answer:

Yes costs of goods sold is peculiar to those businesses dealing in tangible items

Explanation:

For a service company there is no costs of goods sold because no goods were purchased for resale.The major costs found in the cost structure of a service outfit is manpower costs,since people with requisite knowledge form the main reason for business existence

You might be interested in

Question 5 of 10

LekaFEV [45]

C you’re taking a class to show you want to have more skill

7 0

2 years ago

Steadigen Company sells two generators long dash Model A and Model Blong dashfor $ 432 per unit and $ 410 per unit, respectively

ch4aika [34]

Answer:

False

Explanation:

Contribution margin per unit = Sales - variable cost

Contribution margin per unit (Model A) = $432 - $404

Contribution margin per unit (Model A) = $28 per unit

Contribution margin per unit (Model B) = $410 - $304

Contribution margin per unit (Model B) = $106 per unit

False, Contribution margin per unit (Model B) is higher so, motivated to push sales of Model A will be false.

Break-even in units = Fixed cost / Contribution margin per unit

Break-even in units (Model A) = Fixed cost / $28

Break-even in units (Model B) = Fixed cost / $106

6 0

2 years ago

One truth about using color in magazine advertising is?

Volgvan

Answer:

The correct answer is letter "A": Color ads are considered better suited for attracting and holding attention.

Explanation:

Magazines are mediums of communication targeted to a special sector of the market. Examples of magazines are <em>sports magazines, auto magazines, computer science and electronics magazines, </em>and <em>cuisine magazines</em> to mention a few.

As magazines are published periodically it is important that the advertisement displayed captures the attention of the audience. To do so, magazines tend to use color promotions where readers can see the products being promoted more detailed than by just displaying them in black and white.

5 0

2 years ago

A firm is considering two projects. Project Peso requires an initial investment of $100,000. The Internal Rate of Return for Pro

Fofino [41]

Answer:

to accept both the projects i.e. Project Peso and Project Quasi

Explanation:

As we can see in the given case, that the weighted average cost of capital on the projects is 9% while on the other hand, Perso and Quasi both have the internal rate of return 10.6% and 12.6% i.e. above 9% so based on this, the decision that should firm make is to accept both the projects i.e. Project Peso and Project Quasi

The same would be relevant

6 0

2 years ago

_____________may be defined broadly as the lack of resources to achieve a reasonably comfortable standard of living.

Harrizon [31]

Answer: Poverty

Explanation:

Poverty is the lack of resources needed to meet an individual's basic needs, such as the need for; food,water, clothing and shelter. A person is said to be poor if the person can't cater for his basic needs.

5 0

2 years ago