Answer:
$275,000
Explanation:
Goodwill in business combination arises when the price paid in acquiring a business exceeds the fair value of the acquired business net assets . The fair value is used rather than the carrying amount to ensure fairness and an unbiased result
<u>Workings</u>
Purchase consideration = 250,000*15 =3,750,000
Percentage acquired = 100%
Fair value of net asset = 3,000,000+400,000+75,000= 3,475,000
Goodwill = 3,750,000=3,475,000 =275,000
Answer:
Direct Cost.
Explanation:
As Newtech Inc. has hired John for the position of a software programmer to work on their new project. Salary paid to John by Newtech Inc. would be direct cost. Direct costs are the costs which can be tied directly to the manufacturing of products and services and they can be traced very easily as well. Labor cost, commissions, manufacturing supplies, direct material are the direct costs which can traced back to the manufacturing products quite easily.
Answer:
C. Responsiveness of quantity demanded to a percentage change in income.
Explanation:
Income elasticity is defined as the responsiveness of the quantity of a good demanded by an individual as his income changes, all other factors being constant.
Mathematically it is calculated as percentage change in quantity demanded divided by percentage change in income.
Income elasticity is used to find out if a good is a necessity or a luxury good.
The demand for goods that are a necessity does not change with a change in income.
However demand for a luxury good increases as income increases and vice versa
Answer:
A.The primary value activity outbound logistics.
Explanation:
Outbound logistics is the process of delivering the products to customers. In this process companies need to have a good shipping and delivery system that ensure that the customers receive the product in a timely manner and in good conditions. So, in this case when Sandy Fiero decides to create a service that offers free next day shipping on any order over $50, she is adding value to the outbound logistics.
