When setting the price of a product, a company needs to take into account the costs of producing, distributing and promoting the product, as well as a profit margin.
<h3>How to set the product price correctly?</h3>
It is essential that the company align its needs and objectives with the characteristics of the market and its business, in order to define a compatible and competitive price. It is essential to analyze income and expenses to establish an optimal balance in the pricing process, revising the strategy whenever necessary.
Therefore, it is essential that pricing is aligned to the market, to the fixed and variable costs of the business, considering its needs and goals for the business to be well positioned in the market.
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Answer:
Business economics often handles the analysis of various costs that business firms incur. Every business always desires to minimize their costs and maximize its profits by embracing different economies of scale. Nonetheless, the firms fail to determine exact costs that are involved in the production process.
Answer:
See below.
Explanation:
Journal entries to record the transaction are as follows,
Debit Computer account with $3,432
Debit Accumulated depreciation account with $18,720
Credit Truck account with $20,800
Credit Cash Account with $520
Credit profit on sale of asset with $832
This the journal entry that balances the books by targeting appropriate accounts.
Note that accumulated depreciation account has a credit balance as it is an asset reducing account.
Hope that helps.
Ex-post (in an accounting sense), Savings ALWAYS equals Investment. However, ex-ante, DESIRED savings may very well be different from DESIRED investment. It is the REAL INTEREST RATE which adjusts to make desired savings equal to desired investment.
Explanation:
- In the basic, closed economy model, Savings=Investment. The reason for this is because, in this model, growing capital stock is not the only item taken into account in Investment. The other item is inventory accumulation.
- Savings is whatever is left over after income is spent on consumption of goods and services, investment is what is spent on goods and services that are not 'consumed', but are durable.
- Equilibrium in the goods market can be expressed in two equivalent ways: (1) desired national saving is equal to desired investment; AS = AD.
- The real interest rate is the rate of interest an investor, saver or lender receives (or expects to receive) after allowing for inflation. It can be described more formally by the Fisher equation, which states that the real interest rate is approximately the nominal interest rate minus the inflation rate.
<span>The Government uses the budget system to determine the allocation of resources among its major functions such as ensuring the national defense, promoting commerce, and providing health care as well as to determine the objectives and scope of individual programs, projects, and activities. I guess that is what youre asking for?</span>
