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3 years ago

How do flexible expenses differ from fixed expenses?

1 answer:

3 0

Fixed expenses are expenses incurred within a given period of time e.g a month and remain constant and are not easily changed. They include monthly bills and expenses such as health insurance and life insurance. On the other hand, flexible expenses also called variable expenses include daily spending such as spending on food tea, which differ and change time to time .<span />

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Select the items that describe what happens at the equilibrium price. Producers supply the exact goods that consumers buy. Consu

Mekhanik [1.2K]

The items that describes what happens at the equilibrium price are:

Producers supply the exact goods that consumers buy.

Consumers have enough goods, at the given price.

Producers used their resources efficiently.

Equilibrium pricing is when the items demanded match the items supplied. When this happens, the demand and good available equal each other, hence, equilibrium. The pricing is exactly where it should be for consumers to want and purchase the good or service.

6 0

3 years ago

Read 2 more answers

Which of the following is a feature of a good budget?

kiruha [24]

B and C, are bad feautures. A makes more sense, than D, so A should be your answer.

4 0

3 years ago

Read 2 more answers

The debt has an interest rate of 8.50% (short term) and 10.50% (long term). The expected rate of return on the company's shares

viva [34]

Answer:

Re = 16.02%

Explanation:

current stock price 36 x 7,660,000 = 275,760,000

cost of equity = 17.5%

current short term debt = 141,600,000

cost of short term debt = 8.5%

current long term debt = 210,600,000

cost of long term debt = 10.5%

total financing = 627,960,000

equity = 275,760,000 / 627,960,000 = 0.4391
short term debt = 141,600,000 / 627,960,000 = 0.2255
long term debt = 210,600,000 / 627,960,000 = 0.3354

WACC = (0.4391 x 0.175) + (0.2255 x 0.085 x 0.75) + (0.3354 x 0.105 x 0.75) = 0.0768 + 0.0144 + 0.0264 = 0.1176 or 11.76%

under the new structure:

total financing = 627,960,000

equity = 325,760,000 / 627,960,000 = 0.5188
short term debt = 141,600,000 / 627,960,000 = 0.2255
long term debt = 160,600,000 / 627,960,000 = 0.2557

assuming WACC remains unchanged:

0.1176 = (0.5188 x Re) + (0.2255 x 0.085 x 0.75) + (0.2557 x 0.105 x 0.75) = (0.5188 x Re) + 0.0144 + 0.0201 = (0.5188 x Re) + 0.0345

0.5188 x Re = 0.1176 - 0.0345 = 0.0831

Re = 0.0831 / 0.5188 = 0.1602 or 16.02%

4 0

3 years ago

The gross profit method of inventory valuation is not valid when a. there is substantial increase in the quantity of inventory d

lukranit [14]

Answer:

The gross profit method of inventory valuation is not valid when

c. the gross margin percentage changes significantly during the year.

Explanation:

Gross Profit Method:

It is such method that is used to determine the value of ending inventory in a specific period.

The option a, b and d are valid as this method is used when there is substantial increase in the quantity of inventory or in the cost of the inventory during the year. Moreover, it is also used to calculate the amount of ending inventory that is effected by a disaster such as fire, theft etc.
The option c is not valid because it is not used when the gross margin percentage changes significantly during the year as gross profit method is only used to determine the amount of an ending inventory.

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3 years ago

Google has implemented employment policies like increasing the use of women interviewers for female job applicants and expanding

Sholpan [36]

Specialization. The characteristic of bureaucracy that Google is attempting to address this changes is the formal rules since it is stated on the first part that Google has "implemented employment policies" with regards to hiring women and the maternity benefits. These are the standard operating procedure that everyone in the hierarchy formally follows and plays a big role in the decision-making process.

7 0

3 years ago