Answer:
d. Applying a blanket gross profit rate to merchandise that have wide varying rates of gross profit
Explanation:
To know what problem could arise fro mthis method, we must understand the method:
ending inventory = cost available for sales - sales x (1- gross profit)
being cost available for sales = beginning invnetory + purchases
a) if a portion of inventory is destroyed, then we subtract it from the cost available for sales and we should be okay.
b) the amount of purchase is being considered so it will not produce a distorsion
c) then beginning invnetory equals to zero in the formula of cost availalbe and we are also okay
d) here is the problem, if there is a wide array of gross profit we could do an average but it will lead to distorsion if the sales are not in the expected weight.
Answer: 5% of RS 100,000
Explanation:
Opportunity cost is what an economic agent such as an individual, form or government forgoes when a choice is made from different available choices.
Here, since Inaya has used Rs100000 for her ice cream business, the opportunity cost will be the 5% interest that she could have made on the money used for the business
Answer:
11.06%
Explanation:
According to the given situation, the computation of the required return on the stock is shown below:-
Required rate of return = Current Dividend × (1 + growth) ÷ Current Price + Growth
= $4.01 × (1 + 4.7%) ÷ 66 + 4.7%
= 11.06%
Therefore for computing the required rate of return we simply applied the above formula.
Opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.
