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3 years ago

What happens to price when the cost of resources rise and falls

1 answer:

6 0

In any business, when the cost of resources rise, the price of buying the commodity will also be high, this is because when it cost you much to produce a commodity, you will end up charging a higher price when selling it. Failure to do so may lead to making loses. The opposite is also true, when the cost of resources fall, the pricing will also be less.

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Which transactions are typically accounted for by using the relative sales value method to calculate unit purchase cost?

mestny [16]

Answer:

Basket purchases.

Explanation:

Basket purchases is a term used for buying multiple fixed assets. It is bought as the price for basket purchases is lower than the price for individual asset. The transactions in the basket purchases are accounted for by using the relative sales value method to calculate unit purchase cost. It is calculated by dividing each sales value of product by the total sales value of all the product.

4 0

3 years ago

Supply costs at Lattea Corporation's chain of gyms are listed below: Client-Visits Supply Cost March 11,665 $28,579 April 11,461

mario62 [17]

Answer:

$0.48 per client-visit; $22,856 per month

Explanation:

Where,

y2 is the total cost at highest level of activity; y1 is the total cost at lowest level of activity; x2 are the number of units/labor hours etc. at highest level of activity; and x1 are the number of units/labor hours etc. at lowest level of activity

Variable Cost per Unit 

= (28,904 -28,227) / (12,600-11,199)

= $0.48

 Total Fixed Cost 

= y2 ? bx2

= 28,904 - $0.48 * 12600

= $22,856.00

3 0

3 years ago

Read 2 more answers

1. Discuss the following statement: "Corporations are not really run by their owners."

sergij07 [2.7K]

1. Discuss the following statement: "Corporations are not really run by their owners." Corporations are run by everyone who works for the corporation and without everyone working together, it will not run smoothly and bring in revenue.
 
2. Why might an investor choose to become a partner in a limited partnership instead of purchasing the stock of an open corporation? If an investor decided to join in a limited partnership instead of purchasing the stock on an open corporation they would have less to do with the business side as they would in an open corporation. When an investor joins in a limited partnership they have less management responsibility and little to no liability besides their initial investment.
 
3. Is growth a good thing for all firms? How does management know when a firm is ready to grow? Growth is not a good thing for all firms. Depending on what a company is looking to achieve long term, the financial assets they have now to achieve their growth and other goals are all subject to what the company is able to do with the finances and staffing they have. When a corporation is trying to decide whether or not they should grow, management will examine all aspects of the company to make sure they align with the growth plan.
 

4. If you were to start a business, which ownership form would you choose? What factors might affect your choice? If I were to start a business, I would probably choose a limited liability company (LLC) as the ownership form and structure. An LLC is where the members within the company are not held personally liable for the company’s debts or liabilities. Think ownership form works well if you were to join forces an open up a business with a friend or family member. An LLC keeps the tax side of the business easier as allowing the individuals to be self-proprietors. When considering factors that may change this decision they would include: who I am going in business with, what I am in business for, my end goals, current goals and current financial status.

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3 years ago

Facial Cosmetics provides plastic surgery primarily to hide the appearance of unwanted scars and other blemishes. During 2021, t

valentina_108 [34]

Answer: Please see explanation for answers

Explanation:

Age Group Amount Estimated Percent Estimated Amount

Receivable Uncollectible Uncollectible

Not yet due $ 32,000 4 % $1,280

0-30 days past due 10,200 6 % $612

31–60 days past due 7,200 12 % $864

More than 60 days past due 2,600 30 % $780

Total $ 52,000 $3536

Calculation

1) Estimated Amount Uncollectible = Amount Receivable x Estimated Percent Uncollectible =

4% x 32,000= $1,280

6% x 10,200=$612

12% x 7,200=$864

30% x2600=$780

Total = $3,536

The allowance for uncollectible accounts = $3,536

2) Journal to Record the December 31, 2021, adjustment for a debit of $400

Estimated Amount Uncollectible =$3,536

Adjusted = $3536 + debit $400=$3,936

Date Account Debit Credit

Dec 31, 2021, Bad debts Expense $3,936

Allowance for uncollectible accounts $3,936

3) Journal to Record the write-off of $500

Date Account Debit Credit

April 3, 2022, Allowance for uncollectible

accounts $500

Accounts receivable $500

4a)Journal to reinstate the account previously wrtten off On July 17, 2022

Date Account Debit Credit

July 17, 2022, Accounts receivable $100

Allowance for uncollectible accounts $100

4b)Journal to record collection of cash

Date Account Debit Credit

July 17, 2022, Cash $100

Accounts receivable $100

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3 years ago

The accounting equation is assets = liabilities + owner’s equity.

Anon25 [30]

Answer:

A. Why must this equation always balance?

It must balance because all the assets that firm controls have been acquired either by external funding (liabilities), or by internal funding (owner's equity).

This also explains the relationship between economic resources and claims to economic resources. Economic resources (assets) are either the claim of an external agent that has to be paid in the future (liability), or the claim of one of the company's owners who could in theory dissolve the company and take possession of the company's assets (equity).

B. What transactions increase or decrease owner’s equity?

Profits increase owner's equity, as well as capita contributions, whether in the form of stocks, equipment, or other financial instruments.

Costs and expenses are substracted from revenues, and therefore they reduce profits, and owner's equity.

C. How does net income or loss affect owner’s equity?

A net income profit increases owner's equity, while a net income loss decreases owner's equity.

D. Please give an example of a transaction, applied to the accounting equation.

ABC corporation issues 1,000 common stocks with par value of $5, and a price per stock of $7. The journal entry is:

Account Debit Credit

Cash $7,000

Common Stock $5,000

Additional Paid-In Capital $2,000

In this transaction, cash is an asset and common stock and additional paid-in capital are part of the stockholder's equity. The corporation does not have any liabilities yet.

ABC Corp accounting equation = Assets = Liabilities + Stockholder's equity

= $7,000 = 0 + $7,000

As can be seen, the accounting equation is true even in the earliest stages of the corporation.

6 0

3 years ago