Answer: The correct answer is "c. To report a loss when there is a decrease in the future utility below the original cost."
Explanation: When talking about current assets, or more precisely, Merchandise inventory, it is common that sometimes the sale value is less than the original cost of the assets, therefore a negative holding result is produced, that is, a loss.
Answer:
D. The breakeven point decreases.
Explanation:
Breakeven point of a business is defined as the point where it's total cost and total revenues are equal, at this point there is no gain or loss. Hen revenue is above this point profit is made, and when revenue is below this point there is loss.
The formula for break-even is
Breakeven point= Total fixed cost/(Sales price per unit- Variable cost per unit)
Since sales price and variable cost is constant, let's say
(Sales price per unit- Variable cost per unit)= constant (k)
So when we cross-multiply in the formula
Breakeven* k= Total fixed cost
It shows that Breakeven point is directly proportional to Total fixed cost.
So a reduction in Total fixed cost will result in a reduction in Breakeven point.
Answer:
The classical view of social responsibility is that managers today are employees with a primary responsibility to shareholders and their single focus should be on generating financial returns.
Explanation:
Answer:
18.38% and 13.2%
Explanation:
As we know that
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
So for Discount store, it is
= 5.8% + 1.7 × 7.4%
= 5.8% + 12.58%
= 18.38%
And for everything store, it is
= 5.8% + 1.0 × 7.4%
= 5.8% + 7.4%
= 13.2%
The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.
