In a decision to either sell as is or process a product further, joint costs are considered irrelevant and process further costs are considered relevant.
The decision of whether to sell the product right away or wait to sell it in order to earn more money. Although we think that growing the business's income is great, we also need to make sure that the costs associated with the growth will be met. We must contrast the profit margin between selling now and selling later because additional processes will demand more resources and expenses.
Additionally, we need to make an effort to maximise the return on our investment. Additional processes might need more money spent on equipment. These factors require us to apply the sell or process further technique in order to choose the best course of action.
Typically, this scenario occurs in a joint product where one or more outputs can be generated and produce additional revenue. The joint products are produced at the same cost up until the point where they are divided and further sold or processed. Although the products can be sold at the split point, there are instances when continuing developing them is more profitable.
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Answer:
The correct answer is letter "A": geographic characteristics.
Explanation:
Market segmentation refers to the classification companies make of their consumers based on different features such as age, gender, or income for instance so that firms can decide in which of those sectors they are likely to have more success based on the know-how and resources it counts on. As well, companies consider the sector that provides more opportunities so the likelihood of generating more revenue increases.
Therefore, <em>Universal Concerts must focus on geographic characteristics at the moment of choosing what type of concerts they will handle if there is a need to set one type of them only.</em>
Answer:
$48,000
Explanation:
The computation of the amount that should be reported as the intangible asset franchise is shown below
= Purchase value of franchise - amortization per year
= $60,000 - ($60,000 ÷ 5 years)
= $60,000 - $12,000
= $48,000
hence, the amount that should be reported as the intangible asset franchise is $48,000
Answer:
Multichannel distribution system.
Explanation:
Multichannel distribution system is a method or structure in which a single company sets up two or more sales and marketing channels to reach one or more customer segments
Answer:
$1,107,793.41
Explanation:
The value of the payment today can be ascertained using the present value of an annuity due formula since the first payment is immediate as shown thus:
PV=monthly payment*(1-(1+r)^-n/r*(1+r)
monthly payment=$12,500
r=monthly interest rate=6.48%/12=0.0054
n=number of monthly payments in 10 year=10*12=120
PV=$12,500*(1-(1+0.0054)^-120/0.0054*(1+0.0054)
PV=$12,500*(1-(1.0054)^-120/0.0054*(1.0054)
PV=$12,500*(1-0.524003627
)/0.0054*1.0054
PV=$12,500*0.475996373
/0.0054*1.0054
PV=$1,107,793.41
