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2 years ago

Whic of the statement below is FALSE?

Business

1 answer:

Kaylis [27]2 years ago

4 0

Answer:

Reducing principal at a faster pace increases the overall interest paid on a loan.

Explanation:

When a loan is being repaid a repayment schedule is used. Repayment schedule contains proportion of principal and interest to be paid by the borrower.

In a scenario where principal to be paid reduces at a faster rate, the interest must also reduce. Interest is a function of the principal. The higher the remaining principal the higher interest rate and vice versa.

So the statement - Reducing principal at a faster pace increases the overall interest paid on a loan, is false. Rather interest to be paid will reduce.

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The productivity gains achieved by specialization are due to A. comparative advantage. B. lower opportunity costs from switching

Ronch [10]

Answer:

Comparative advantage.

Explanation:

Comparative advantage is the ability to produce good and services at a lower opportunity cost compared to others , leading to lower selling price and competitive advantage over others .

Specialization is about concentrating on producing a few products in order to

build brands , expertise and gain maximum productivity leading to a reduction in selling price and a comparative advantage.

4 0

3 years ago

Read 2 more answers

From the list below, select the items that are classified as a materials activity. Select the correct answers. a.Raw materials u

USPshnik [31]

Answer:

A) Raw materials used

B) Raw materials beginning inventory

C) Raw materials purchases

Explanation:

When we are calculating the cost of goods sold, we must calculate total direct materials used + total direct labor + overhead overhead costs applied.

To calculate how much direct (raw and intermediate) materials are used, we start with our beginning inventory of (raw and intermediate) materials + purchases of (raw and intermediate) materials - ending inventory of raw materials - indirect materials used.

Some industries only calculate raw materials used, but others might include intermediate components in the equation.

6 0

2 years ago

Garcia Co. issued bonds with detachable common stock warrants. Only the warrants had a known market value. Cash proceeds exceed

777dan777 [17]

Answer:

Discount on bond payable

Explanation:

since in the question it is mentioned that the company has issued the common stock warrants also the cash proceeds is more than the sum of the fair value + face value

So we presume that the bond are to be sold at the discount

Therefore the excess should be reported as the discount on bond payable

5 0

2 years ago

The accounting hired by Forever Fitness have determined total fixed cost to be $75,000, total variable cost to be $130,000, and

yan [13]

Answer:

Option D. Shut down because staying open would be more expensive.

Explanation:

The reason is that the total variable cost is lower than the total revenue which means the company can not reduce its variable cost so it is meaningless to produce the product. So the best option left is not to generate loss by simply shutting down the business.

5 0

3 years ago

Henderson Electronics Corporation manufactures and sells FM radios. Information on the prior year's operations (sales and produc

Juli2301 [7.4K]

Answer:

Explanation:

Calculation to determine the minimum price the company would accept for the radios

Minimum price=Selling costs (40% variable)*$10

Minimum price=$4

Therefore the minimum price the company would accept for the radios will be $4 because it COVER THE VARIABLE SELLING EXPENSE

6 0

2 years ago