The fact that the manufacturing plant dumps chemical waste into a nearby river and poisons the water supply is an Externality.
<h3>What is an externality?</h3>
An externality is an effect that a third party feels as a result of a transaction or event that has little to nothing to do with them.
The manufacturing plant is dumping its chemical waste in the river and polluting the water supply for the environment. This is a negative externality that the town had nothing to do with.
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Answer:
Explanation:
Net sales - $894,250
Cost of Goods - $ 616850
Average account receivable - $40,650
Account receivable at year end - $28200
Average inventory - $182000
Inventory at year end - $158,000
Inventory turn over
Cost of Goods sold / Average inventory for the period
616850/182000= 3.40 times
No of days sales in inventory = Ending inventory / Cost of Goods sold *365
158000/616850*365 = 93.5 days
Account receivable turnover = net credit sale / average receivable
894250/40650=21.9
No of days sales in account receivable -
Receivable at year end/total credit sales*365
28200/894250*365= 11.5 days
Answer:
Beck Inc Operating leverage 3.2
Bryant Inc Operating leverage 2.6
Explanation:
Computation for the operating leverage for Beck Inc. and Bryant Inc
Using this formula
Operating leverage = Contribution margin/Income from operation
Let plug in the formula
Beck Inc Operating leverage = $201,600/ $63,000
Beck Inc Operating leverage= 3.2
Bryant Inc Operating leverage= $436,800/$168,000
Bryant Inc Operating leverage= 2.6
Therefore the operating leverage for Beck Inc. and Bryant Inc are:
Beck Inc Operating leverage 3.2
Bryant Inc Operating leverage 2.6
Answer:
b. it can be traced to a division in a cost effective manner.
Explanation:
Direct costs are those costs which can be directly attributable to a product, activity or a department. For example, direct material or direct labor are direct costs.
These refer to those costs which are incurred specifically for a product, service or incurred for a particular department. Usually such costs are variable i.e they usually vary with the level of production.
Direct costs can be specifically traced so they need not be allocated to any product or a department.
Demographics can include any statistical factors that influence population growth or decline, but several parameters are particularly important: population size, density, age structure, fecundity, and or mortality.
