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Zarrin [17]
3 years ago
6

Chang Industries has 2,000 defective units of product that already cost $14 each to produce. A salvage company will purchase the

defective units as is for $5 each. Chang's production manager reports that the defects can be corrected for $6 per unit, enabling them to be sold at their regular market price of $21. The $14 per unit is a: Multiple Choice Sunk cost. Period cost. Out-of-pocket cost. Opportunity cost. Incremental cost.
Business
1 answer:
lidiya [134]3 years ago
5 0

Answer:

A sunk cost is the correct answer to this question.

Explanation:

Sunk cost:- Sunk costs are those expenses that have been accumulated in the past and are thus in some way unrelated to judgment-making.

In the question referred to above, the company has already made $14 to produce. This cost will be inconsequential even if the company makes the units as it is or procedures them further.

As a result, $14 is a sunk expense.

Other options are incorrect because they are not related to the given scenario.

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A disadvantage of corporations is that shareholders have to pay on profits.
olga_2 [115]

Answer:

taxes

Explanation:

just took the test

4 0
3 years ago
Ford developed a series of ________, or short videos shown online featuring entertainment centered around its Focus brand, aimed
Oksi-84 [34.3K]

Answer:

Webisodes

Explanation:

Webisodes are a form of series that has episodes aired predominantly on the web. It can be downloaded or streamed, and it can also be aired on normal cable television.

The major characteristic of webisode is its distribution on the internet, and it uses various video streaming websites.

Ford used webisodes to target college students for its Focus brand.

College students use the internet alot so they will have more exposure to the webisodes.

7 0
3 years ago
Presented below are the basic assumptions and principles underlying financial statements. a. Historical cost principle d. Going
dimulka [17.4K]

Answer:

1. Periodicity assumption.

2. Going concern assumption.

3. Historical cost principle.

4. Economic entity assumption.

5. Full disclosure principle.

6. Monetary unit assumption.

Explanation:

1. <u><em>Periodicity assumption</em></u>: The economic life of a business can be divided into artificial time periods. It is also known as the Time period assumption.

2. <em><u>Going concern assumption</u></em>: The business will continue in operation long enough to carry out its existing objectives.

3. <em><u>Historical cost principle</u></em>: Assets should be recorded at their acquisition cost.

4. <em><u>Economic entity assumption</u></em>: Economic events can be identified with a particular unit of accountability.

5. <em><u>Full disclosure principle</u></em>: Circumstances and events that could make a difference to financial statement users should be disclosed.

6. <em><u>Monetary unit assumption</u></em>: Only transaction data that can be expressed in terms of money should be included in the accounting records.

5 0
3 years ago
Taxes that have wealthy people pay a higher rate of tax than average or poor people are called __________.
Furkat [3]
Taxes that have wealthy people pay a higher rate of tax than average or poor people are called Progressive tax. It is the type of tax that goes on increasing with increase of income. The people with higher income pays a higher amount of tax than the people with lower income. I hope the answer has helped you.
4 0
3 years ago
The volume of international trade is governed by factors including the level of domestic economic activity (for example, prosper
Marat540 [252]

Answer:

True

Explanation:

International trade is trade across national boundaries and it includes the import and export of goods and services. An economic prosperity is synonymous with rising incomes and it would increase the propensity to import; that is, people in the domestic economy now have more incomes to spend on imports. Alternatively, a recession would lead to a fall in incomes and imports, and also a fall in investment which conseqeuntly reduces exports volumes.

Trade restrictions (protectionism) such as tariffs, quotas, competitive devaluation, administrative complexities, export subsidy hinder free trade and they could reduce the volume of imports into a country. This is because trade restrictions would make imports to be more expensive; the aim might be that the government is trying to correct a current account deficit. However, the effectiveness of trade restrictions in  reducing import volumes and influening export is dependent on the price elasiticty of demand for imports and exports, the quality of a country's good or service, and how the country's rate of inflation compares with that of other countries.

4 0
3 years ago
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