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Marginal productivity theory assumes that a worker’s income is a function of the contribution of that worker to the value of the output. in business, this is called the "value-added" approach.
There is a correct theory called marginal productivity theory. Wages are paid at a level equal to the marginal revenue product of labor, the MRP (value of the marginal product of labor). MRP is the increase in income caused by the increase in output produced by the last employed worker.
The marginal productivity theory of income distribution proposes that each individual should receive income based on their contribution to total output. The marginal productivity theory of income distribution has been criticized for the following reasons. Income from inheritance is inconsistent with the theory.
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Answer:
c. The "apparent," but not necessarily the "true," financial position of a company whose sales are seasonal can change dramatically during a given year, depending on the time of year when the financial statements are constructed.
Explanation:
Financial statements are used to show the financial activity of a business within a given period.
One of the principles of a accounting is periodicity. This requires businesses to report their financial position at regular intervals consistently, and not in an inconsistent manner. So if a business reports their finances twice a year. At year end and at mid year, it is possible that at mid year due to seasonal sales performance will be high and business is perceived to be highly profitable.
But financial report at end of year in the off-season will show low performance.
So for seasonal businesses there can be apparent view of a business during the year that can change dramatically because of time at which reports are made.
Answer:
the future value in two years is $110.25
Explanation:
The computation of the future value in two years is shown below:
As we know that
Future value = Present value × (1 + rate of interest)^number of years
= $100 × (1 + .05)^2
= $100 × (1.1025)
= $110.25
Hence, the future value in two years is $110.25
The same should be considered and relevant
