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3 years ago

What type of risk is eliminated through diversification?

Business

2 answers:

Helen [10]3 years ago

7 0

Answer:

<u><em>Unsystematic risk</em></u>

Explanation:

This risk is inherent in a specific company or industry. Then diversification helps to avoid this risks as investments are made in different companies and industries.

Annette [7]3 years ago

3 0

The risk that diversification helps us overcome is known as an unsystematic risk.

<u>Explanation:</u>

As the name suggests, it means a situation of a company being affected by a risk that doesn’t exist in other industries. It only takes place in a specific industry. Diversification is taken up to reduce this risk; the companies invest in various sectors rather than sticking to one specific sector.

It also involves allocating various financial instruments for investments. Diversification targets the returns and helps in improving it as the company invests in various categories that perform differently and differ in reactions too.

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RTP Corp. is developing a new computer processor to compete against Intel's successful product

Alenkinab [10]

Answer: Target Costing

Explanation:

Target Costing is a method of costing on a product done while it's still being produced to determine the best price at which the product can be sold that would be able to compete with price of other similar products in the market and still make profit for the company.

RTP Corp needs to apply target costing for it's new computer processor in order for it to be profitable and beat the price of other processors in the market.

6 0

2 years ago

Locus Company has total fixed costs of $118,000. Its product sells for $55 per unit and variable costs amount to $39 per unit. N

Dmitriy789 [7]

Answer:

8,850 units

Explanation:

We know that

Net income = Unit sales × (Selling price per unit - variable cost per unit) - Fixed cost

$23,600 = Unit sales × ($55 - $39) - $118,000

$23,600 = Unit sales × $16 - $118,000

$23,600 +$118,000 = $16 unit sales

So, unit sales = 8,850 units

The net income is computed below:

= Given percentage × Total fixed cost

= 20% × $118,000

= $23,600

6 0

2 years ago

On December 31, year 3, Byte Co. had capitalized software costs of $600,000 with an economic life of four years. Sales for year

Ratling [72]

Answer:

net capitalized cost is = $450000

so correct option is b. $450,000

Explanation:

given data

capitalized software costs = $600,000

expected total sales = 10%

sale = 4 year

net realizable value = $480,000

solution

we find out net capitalized cost of computer software that is

net capitalized cost of computer software is = Year 1 balance - Year 2 amortization ........................1

here we get first Year 2 amortization that is

Year 2 amortization is = capitalized software costs ÷ total projected sale ..............2

put here value

Year 2 amortization = $\frac{600000}{4}$

Year 2 amortization is = $150,000

so here we get net capitalized cost

net capitalized cost is = $600,000 - $150,000

net capitalized cost is = $450000

so correct option is b. $450,000

8 0

3 years ago

Based on the principles of psychological pricing, which of the following price adjustment would likely have the greatest positiv

saul85 [17]

Answer:

D.) $50 to $49

Explanation:

a p e x

6 0

3 years ago

The total overhead variance is the difference between actual overhead costs and budgeted overhead costs. True False

disa [49]

The difference between the realized overheads and the estimated overheads is the total overhead cost.

<h3>What are total overhead costs?</h3>

Total overhead costs are identified as the costs related to administration, sales, marketing, and production. Before the total overhead costs are realized, a budget regarding estimated costs is prepared.

The calculation of the total overhead costs is actual overhead costs less the budgeted overhead costs.

Hence, the aforementioned statement regarding total overhead costs holds true.

Learn more about total overhead costs here:

brainly.com/question/13018280

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6 0

2 years ago