The potential risks that these three groups fall into the same category is that it is a low percentage and it is not a realistic proposition.
According to the theory of 50, 20, 30, a person's salary should be divided into 3 buckets that are:
- 50% of salary must go towards mandatory expenses (housing rent payments, utilities, medical care, basic food, and transportation).
- 20% of the salary must be used for savings and debt payments (programmed savings for old age or a special event, or the payment of debts such as card payments, bank loans, among others).
- 30% of the salary must be allocated for non-priority expenses (it is the expenditure of money on experiences, objects, or others that are not essential for the individual).
This income distribution is unrealistic because most people spend more than 50% of their salary on compulsory expenses, reducing their economic capacity for other purposes.
In this way, the 20% destined to savings and payment of debts would be a minimum amount of the salary, which could have serious consequences such as:
- Inability to pay debts
- Inability to save for the future
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Answer:
Explanation:
Amount of Bolton Company inventory = 38,972
Calculations are attached
1. Find net realizable value, which is selling price - cost of disposal;
2. Then subtract normal profit from net realizable value = [g];
3. Find designated market value by choosing the middle value of cost to replace, net realizable value and [g];
4. Choose lowest between designated market value and selling price;
5. Multiply by quantity.
Answer:
The correct answer is D: economies of scale
Explanation:
Economies of scale are the diminished cost by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. <u>This happens because fixed costs are spread over a larger number of goods.</u> There are implications in variable costs as well (for example in obtaining discounts by large purchases from suppliers). In general, the larger the scale, the more cost savings.
The cost per unit depends on how much the company produces. Larger companies can produce more by spreading the cost of production over a larger amount of goods. Specialization of labor and more integrated technology boost production volumes. Lower per-unit costs can come from bulk orders from suppliers, larger advertising buys, or lower cost of capital. Spreading internal function (for ex: accounting, information technology, and marketing) costs across more units produced and sold helps to reduce costs.
Creating a budget you can exceed but also creating a budget you can’t go over, Hope this helps! All i can tell you...
