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3 years ago

In one or two sentences, describe why decisions are based on expected costs and benefits.

1 answer:

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<span>Generally, man wants to engage in feasible business or investment that will bring profits or benefits. Because of this, before engaging in the business or purchasing of a product, he usually weights the costs and the benefits that will be derived. If the benefits are higher than the costs, he will usually be ready to engage in the business or buy the product, but if the reverse is the case, he will see no reason for engaging in such a business.</span><span />

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Show the change in the market for gasoline that is consistent with the following statement:

MArishka [77]

Answer:

Supply reduces and supply curve shifts left.
Price increases

Explanation:

The Middle East supplies a significant amount of the world's oil which means that conflict there could disrupt the movement of oil in the world.

In this scenario there is a conflict. This conflict would cause the supply of oil to reduce which means that the Supply curve will be forced to shift left to show that it has dropped.

This new supply curve will then intercept with the demand curve at a higher equilibrium price thereby leading to a price increase.

8 0

3 years ago

On December 31, 2017, Beta Company had 300,000 shares of common stock issued and outstanding. Beta issued a 5% stock dividend on

postnew [5]

Answer:

305,000 Shares

Explanation:

The approriate number of shares to be used in the basic earnings per share computation for 2018 is calculated thus:

As at December 31, 2017 Issued and Outstanding Common Stock = 300,000 shares

Dividend paid= 5% Common Stock

Meaning As at June 30, 2018, Common Stock issued rose as follows:

=(300,000×1.05)= 315,000

However, Treasury Stock Reacquired September 30, 2018 = 40,000 shares of common stock
Implication: From January - September 30, Common Stock increased from 300,000 to 315,000. However, From October 1- Decembe 21, Common Stock reduced by 40,000.
To Calculate the Shares for EPS: We need to remove the last 3 months (October- December) for which the outstanding common stock has reduced by 40,000 shares.
= (300,000 × 1.05) - (40,000 ×3/12)
= 315,000-10,000
=305,000 (Appropriate number of shares for basic EPS for 2018)

7 0

3 years ago

an industry is comprised of 20 firms, each with an equal market share, what is the four firm concentration ratio of this industr

marta [7]

Answer:

4-Firm Concentration ratio = 20%

Explanation:

Each firm has equal share

That means 100% share of the industry is divided equally among the 20 firm

Share of 1 firm = 100/20 = 5%

4-Firm Concentration ratio = Share of 1 firm * Number of firm

4-Firm Concentration ratio = 0.05 * 4

4-Firm Concentration ratio = 0.2

4-Firm Concentration ratio = 20%

3 0

3 years ago

Dorsey Co. has expanded its operations by purchasing a parcel of land with a building on it from Bibb Co. for $83,000. The appra

algol [13]

Answer:

The cost should be recorded for the land is $15,150

Explanation:

In order to calculate the cost should be recorded for the land we would have to calculate the following formula:

cost should be recorded for the land=(Appraised value of land/Appraised value of land and building)*combine cost of land and building

Appraised value of land=$23,000

Appraised value of land and building=$23,000+$103,000=$126,000

combine cost of land and building=$83,000

Therefore, cost should be recorded for the land=($23,000/$126,000)*$83,000

cost should be recorded for the land=$15,150

The cost should be recorded for the land is $15,150

4 0

3 years ago

Gradwell, Inc., manufactures and sells two products: Product K8 and Product I4. Data concerning the expected production of each

lisabon 2012 [21]

Answer:

Gradwell, Inc.

The overhead applied to each unit of Product I4 under activity-based costing is closest to:_______.

$243.00 per unit.

Explanation:

a) Data and Calculations:

production per unit DL rate Total Labor Cost

product K8 300 5.0 1,500 $17.20 $25,800

product I4 900 3.0 2,700 $17.20 $46,440

total direct labor hours 4,200 $17.20 $72,240

production per unit Direct Materials Total Material Cost

product K8 300 $150.20 $45,060

product I4 900 $243.70 219,330

Total direct materials costs = $264,390

Estimated Expected activity

Activity Cost Pools Activity Measures Overhead Product Product Total

Cost K8 I4

labor related DLHs $176,064 1,500 2,700 4,200

machine setups setups 71,290 400 600 1,000

order size MHs 121,396 4,300 4,600 8,900

Total $368,750

Overhead Cost Allocation Product Product Total

K8 I4

Labor cost $62,880 $113,184 $176,064

Machine setups 28,516 42,774 71,290

Order size 58,652 62,744 121,396

Total $150,048 $218,702 $368,750

Quantity 300 900

Overhead per unit $500.16 $243.00

4 0

3 years ago