Answer:
Factors of production
Explanation:
The general name is factors of production. They are also the 'inputs' in the production process.
The factors of production are combined or put together for the productions of goods and services to happen. The four factors include land, which represents the natural resources in this case.
<u>Land</u> refers to the space used to set up a business, and fertile lands used for agriculture, minerals, oil and gas, forest, and other natural resources.
<u>Labor </u>is the human input in production. It involves workers' knowledge, skills, strength, and time spent on the production process.
<u>Capital </u>is the money and assets used to start and maintain the business operation. It includes plant and machinery, equipment, building, factories used in making products for sale.
<u>Know-how </u>refers to entrepreneurship. It is the skills, willingness, and ability to put together and manage the other factors to produce goods.
Answer:
The answer is yes, it will function as a medium of exchange.
Explanation:
Money has three functions, store of value, unit of account and medium of exchange. Money that can be used as a medium of exchange is money that is accepted as such by both buyers and sellers, and that is comfortable, or convenient enough, to be carried and exchanged
In this example, the nation of Newbie will issue a currency that can be easily transported. While heavy stock cardboard is a little bit heavier than the paper in which most modern-day currencies are printed, the weight is still light, and does not impede easy transportation and exchange of the currency bills.
Besides, the new Newbie Nugget will be what is know was the legal tender of the nation. The legal tender is the currency that a specific country accepts to collect taxes. This gives more legitimacy to Newbie Nugget and makes it a classical example of a medium of exchange.
Answer:
Current ratio = 0.33 times
Acid test ratio = 0.29 times
Explanation:
• Current ratio
Current ratio = Total current assets ÷ Total current liabilities
= $875 ÷ $2,638
= 0.33 times
• Acid test ratio
Acid test ratio = Quick assets ÷ total current liabilities
Where,
Quick assets = Total current assets - Inventory
= $875 - $116
= $759
Recall total current liabilities = $2,638
Therefore,
Acid test ratio = $759 ÷ $2,638
Acid test ratio = 0.29 times
Answer:
The correct answer is use of multiple cost drivers to allocate overhead
Explanation:
Use of direct labor hours or direct labor cost to assign overhead to products is typical of traditional costing systems as overhead is believed to have positive relationship with labor-related variables.
Besides,using a business-wide or plant-wide single predetermined overhead rate is not feature of traditional systems of costing.
Since labor-related variables such as direct labor hours or direct labor cost is assumed to be a driver of overhead cost,hence an appropriate overhead absorption basis,it is perfectly understood that there is correlation between direct labor and incurrence of overhead cost in the business.
