Answer: Stand alone principle
Explanation:
Stand alone principle is the principle that is used by a company to decide whether or not to engage in a project based on the profitability of identical projects that has the same risk. Stand alone principle allows firms to evaluate a project based solely on the incremental cash flows of a firm that is related to the project.
Without stand-alone principle, the project evaluation for a firm would require the forecast of all of the firm’s cash flows.
Answer:
FALSE
Explanation:
The needs of users of government financial reports are NOT the same as those of users of business entity financial reports.
Users who are interested in government financial reports which has to do with understanding the financial performance of federal, state and local governments
; do so, to understand if the purpose of governance is being achieved which is the well-being of the citizens (Economy and Defense).
Contrariwise, users of business entity financial reports, which has to do with understanding the financial performance of business organisations, do so, to understand if the purpose of business establishment is being achieved which is the profit-maximization.
Answer:
0.4 swiss good(s) per U.S good(s)
Explanation:
firstly we calculate how many dollars we get per Frank so we will say $1/ 5 Swiss Franks =$0.2 which is similar to (5x =1, solve for x =1/5 / 0.2 in simple maths )per Swiss Franc thereafter we calculate the how many Swiss Francs per good compared to dollars per good we can get so therefore 2 Swiss Francs per good/$1 per good is the ratio of comparison , hence we treat f(X) as a function of swiss good(s) per U.S good, therefore f(X)= 2 x , knowing that x= 0.2 f(x)= 2(0.2) which will result in f(x)= 0.4.
Answer:
Equilibrium quantity will increase; the effect on price is ambiguous.
Explanation:
An add in the newspaper claims that the price of milk will increase next week . At the same time, a new and improved pasteurization process makes milk production more efficient. Given these two effects, we can say about the current equilibrium price and quantity of milk that Equilibrium quantity will increase; the effect on price is ambiguous.
The conclusion that equilibrium quantity will increase is dependent on the fact that expectation on future prices is a major factor that leads to changes in demand
People’s expectations about the future can have a significant impact on demand. Or, more specifically, their expectations of future prices can change demand.
If consumers expect prices to increase shortly, current demand often increases, i.e., the demand curve shifts to the right.
Answer:
the number of gas grills must Gelbart Company sell to break even is 41,680 gas grills
Explanation:
The computation of the number of gas grills must Gelbart Company sell to break even is given below:
= Fixed cost ÷ contribution margin per unit
= $32,510,400 ÷ ($1,300 - $520)
= $32,510,400 ÷ $780
= 41,680 gas grills
Hence, the number of gas grills must Gelbart Company sell to break even is 41,680 gas grills
